Earn ₹12.75L But Still Owe Tax? Here's Why

Budget 2025 made salaries up to ₹12.75 lakh tax-free, but if you earned money from stocks, crypto, or lottery this year, you still owe tax — even if your total income looks small.

Here's what happened: Section 87A rebate and standard deduction together make salaried income up to ₹12.75 lakh effectively zero-tax under the new regime for AY 2026-27.. Special incomes — short-term capital gains on equity (20%), long-term capital gains above ₹1.25 lakh (12.5%), and crypto/VDA gains (30%) — are taxed at fixed flat rates regardless of your total income.. Lottery, gambling, and game-show winnings are taxed at a flat 30% with no deductions or rebate benefit, even if your salary alone would have attracted zero tax..

What you should do: List every income source this year — salary, stock sale profits, mutual fund redemptions, crypto trades, freelance income — before assuming you owe zero tax.. Calculate capital gains separately: use your broker's Tax P&L statement (available on Zerodha, Groww, Angel One portals) to get exact STCG and LTCG figures for FY 2025-26.. File your ITR even if net tax payable is zero — failing to disclose special incomes like crypto or foreign assets can trigger a notice from the Income Tax Department..

Pro tip: If you sold equity mutual funds or stocks and your LTCG exceeds ₹1.25 lakh, consider tax-loss harvesting before March 31 — booking losses on underperforming holdings can offset your gains and cut your tax bill legally.