✅ Rebate u/s 87A not allowed in New Regime for special rate incomes
If your income includes special tax rate components (like LTCG, STCG, etc.), you cannot claim the ₹25,000 rebate under section 87A in the New Tax Regime.
✅ Rebate u/s 87A allowed in Old Regime for special rate incomes
In the Old Regime, you can claim the 87A rebate even if your income includes special tax rate items, subject to overall income limit.
✅ Basic Exemption Limit still applies to Special Rate Incomes
Whether you’re in the Old or New Regime, the basic exemption limit (₹2.5L / ₹3L depending on age) is still available before applying the special tax rate.
✅ If property is sold after 23/07/2024:
LTCG tax will be calculated as lower of:
✅ If property is sold before 23/07/2024:
LTCG will be taxed at a flat 20% with indexation – the existing rule continues.
✅ For sale after 23/07/2024, LTCG to be added to Gross Total Income (GTI) will be the amount without indexation, even if you later opt for indexation to reduce tax.
✅ Exemptions u/s 54 series (like 54, 54F)
For property sold after 23/07/2024, the investment required for exemption will be calculated on LTCG without indexation, regardless of which tax regime you follow.
✅ Buyback before 01/10/2024:
Amount received from buyback is exempt under section 10(34A) – no tax in shareholder’s hands.
✅ Buyback after 01/10/2024:
Amount received is taxable as “Income from Other Sources” u/s 2(22)(f) in shareholder’s hands.
👉 The purchase price of shares will be treated as capital loss in current year, but set-off rules will apply.
