Income-tax calculation: Full list of special rate incomes not included in ₹12 lakh tax-free limit for FY26

In Budget 2025, Finance Minister Nirmala Sitharaman proposed there will be no tax on income up to ₹12 lakh from FY 2025-26 under the new tax regime.

For salaried, employees, the tax-free income limit will go up to ₹12.75 lakh due to the standard deduction of ₹75,000 available to them in the new regime.

As per the proposed changes in Budget 2025, the taxable slab will start with a 5% tax from ₹4-8 lakh income while the 30% tax rate will kick in on income over ₹24 lakh. Also, there is a rebate of ₹60,000 for income up to ₹12 lakh under section 87A.

However, the finance minister clarified that the tax-free income limit of ₹12 lakh for non-salaried and ₹12.75 lakh for salaried taxpayers will not include special rate incomes.

"I am now happy to announce that there will be no income tax payable up to income of ₹12 lakh (i.e. average income of ₹1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be ₹12.75 lakh for salaried taxpayers, due to standard deduction of ₹75,000," the finance minister said in budget speech.

Since the announcement, many taxpayers have been curious about which special rate incomes will not be tax-free even if their total income is below ₹12 lakh. We've got the details for you below:

Full list of special rate incomes

Source: CA Dr Suresh Surana

Why is this list important?

"While availing these benefits, it is essential for taxpayers to consider all categories of Special Rate Income to ensure a clear understanding and accurate application of the favorable provisions introduced in Budget 2025," says CA Dr Suresh Surana.