what if my income marginally exceeds 12 lakhs what if I have capital gains by sale of equity what if I have income from crypto and what if I have two House properties we're going to discuss answers to all these questions so keep on watching the video till the end before we answer all these questions let's understand that budget 2025 is finally here and with it comes a wave of new policies that could reshape India's economy this budget will Define how we earn , invest and grow in the coming years because let's be honest no policy
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more you'll be able to master 20 plus AI tools for data analysis business growth and personal branding this training is for everyone whether you're are self-employed or a salaried professional from a tech or a non-tech background like sales, marketing , operations or Finance the link is in the description and in the pinned comments don't wait register now and make sure to join the WhatsApp group for joining links and other updates hey folks CA Rachana Ranade here and I welcome you all to a very important video on FAQs regarding budget 2025 specifically focusing on the taxation
aspect now I got a lot of comments and I tried to short list few questions and that is the reason why I thought of doing this video which will focus on three four key points around income tax the very first question that people are ask asking were what if my income marginally exceeds 12 lakhs so if you remember I had done this in the previous video wherein I said that if someone's income is 12 lakhs then how will the tax be calculated so on first 4 lakhs 0 to 4 lakhs income tax will be 0
on the slab of 4 to 8 that will be 4 lakhs 4 lakhs ka 5% that will come to how much 20,000 the next slab is of 8 lakhs to 12 lakhs and for this 4 lakhs ka 10% that will come to 40,000 and in this scenario if a person is earning 12 lakh the total tax liability would have been 60,000 Rupees okay now let's consider a scenario that instead of 12 lakhs some person is actually earning 12 lakh 10,000 rupees then what is the scenario now I'll say he has gone up above 12 lakhs
assume that this person is having a business or profession okay so just marginally above 12 lakhs what happens in that case is that this relief of 60,000 will be gone okay so what will happen is that this 60,000 plus now balance 12 lakhs to 16 lakh category comes at what percent that comes at a 15% tax slab so additional income about 12 lakhs is how much 10,000 so 10,000 Ka 15% comes to how much 1,500 so his total tax payable would have been 61,500 ah now you understand how much is additional income earned only 10,000
Rupees and for that 10,000 rupees poor thing that person will have to pay a tax of 61,500 Bahut na insaafi hai! will that happen answer is no and that's where the concept of marginal relief comes into play the Act says that if your tax amount exceeds the additional income that you are earning we will not ask you to pay a higher tax we will provide you marginal relief so in this case the person will be required to pay only 10,000 rupees and not entire 61,500 in simple words what is the government saying a you earn
just 10,000 rupees above the limit okay pay that entire amount okay now I'll give you two three more examples of this so let me take you to the actual screenshot of FAQs which our government has provided so now what will happen let's say a person is earning 12 lakh 70,000 okay how much is the additional income that person is earning additional income is 70,000 but actual tax without marginal relief is 70,500 basically with the help of tax Slabs that amount will come to 70,500 what will the person be required to do pay entire 70,500 or
pay 70,000 pay 70,000 only okay and last example let's take of 12 lak 75,000 now what is the additional income that person is earning additional income is 12 lakh ka above is 75,000 rupees instead of paying entire 75,000 rupees now if he calculates with the help of tax slabs that amount comes to 71,250 and in this case he will have to pay the tax amount which is 71,250 in short all in all what is the Crux? Crux is that if you are marginally above the 12 lakhs ka limit you need not pay the whole big
amount of tax you pay just the additional income whatever you have heard but there will be a point a cut off point where the tax amount exceeds the income about 12 lakh in that case you'll have to pay the tax amount and not the whole income above 12 lakhs let's move on with the second question which is about what if a person gains uh I mean what what if there is a short-term capital gain on sale of equity shares so I hope everyone knows that there are two types of capital gains that we always discuss
one is a short-term capital gain which is taxed at 20% I'm talking about listed Equity shares okay and if if I'm talking about long-term capital gain that will be taxed at 12.5% and and for first 125,000 rupees the tax is 0 for first 125,000 of long-term capital gain on listed Equity shares taxes 0 now a lot of people were confused that when Nirmala Madam said that first 12 lakh rupees 0 tax what about capital gains on listed Equity shares of course she very clearly mentioned in her budget speech that this 12 lakhs ka basic exemption
limit is given only when so basic exemption limit with rebate okay I'm not using those tougher words again and again for a common man it's up to 12 lakhs is 0 there is a concept of rebate let's not go into that right now okay so uh coming back to the discussion she had very clearly mentioned that if we are talking about taxation as per special rates 12 lakhs limit doesn't apply okay what does she mean with that let's take a simple example let's say Chandu earned 4 lakh Rupees from short-term capital gain of sale of
equities okay question is how much tax will he have to pay is it tax flat at 20% so 4 lakh ka 20% 80,000 rupees will he have to pay 80,000 rupees answer is no why that is the reason we have tax slabs from 0 to 4 lakhs, 0 , from 4 lakh to 8 lakhs 5% 8 lakh to 12 lakh 10% and so on so forth correct so if his short-term capital gain fits into the 0 to 4 lakh category his tax amount will actually be equal to 0 Rupees simple till here so it's basic
so you can imagine there is a bucket bucket says this is the basic exemption limit you can fill fill your capital gain here up to 4 lakh it is going to be 0 no problem okay now let's consider one more scenario let's say okay I'm rubbing this now let's say Chandu also earns a taxable income of 1 lakh Rupees from business profession let's say he does some side gigs you have heard this term in the budget speech also side gig is something like freelancing okay and the taxable amount assume comes to 1 lakh Rupees question
is then what how much will be the tax which will be payable by Chandu in that case what will happen is that first one lakh Rupees so let's say first 1 lakh Rupees goes into this bucket now how much is the balance remaining balance remaining is only 3 lakh so out of this 4 lakh now this 4 lakh will be split into 3 lakhs plus 1 lakhs 1 lakhs has gone into this bucket sorry 3 lakhs has gone into this bucket because this bucket had a capacity of 4 lakhs 1 lakh was this side Gig
ka income balance 3 lakh goes here so this 1 lakh will be taxed at the rate of 20% and that comes to how much 20,000 Rupees will be the tax liability for Chandu is this also clear now just understand one thing is there any change here answer is no there is no change the same thing used to be there in the previous assessment here as well there is absolutely no change there was some unnecessary confusion and that is the reason why I thought of clarifying this with the help of a case study I hope this
is all absolutely clear uh and if you want to have certain section references whatever I said is absolutely correct but if you want to read by yourself have a look at this this is a screenshot of section 111A and have a look at if you want you can pause this read through the whole thing and then you'll understand why am I saying this and this is also a screenshot for long-term capital gains 112A wala so you can definitely have a look at this as well pause take a screenshot whatever read this and then you'll understand
whatever calculation I gave with the help of an example is absolutely correct let's move on with the next one which is about taxation on VDAs VDAs is nothing but virtual digital assets that is nothing but taxation on Cryptos and for that have a look at this well today I've gone into absolute teaching Zone hmm okay so let's say a person got a gain of let us say 10 lakh Rupees by sale of some Crypto token and there was a loss of 2 lakh Rupees so net net this person gains a profit or gets a profit
of 8 lakh Rupees by sale of Cryptos question is number one will that person get I mean will that person be eligible for 0 tax because anyways it is within 12 lakhs limit answer is no okay this is again under a separate section where tax is at the rate of flat 30% plus education CESS okay 4% ECS HEC whatever so 4% extra CESS but 30% of what is the question 30% of 8 lakhs or 30% of 10 lakhs you'll be like 30% of 8 lakhs because loss hai na now this section very clearly mentions that
if it is about taxation on Virtual digital assets losses cannot be set off against gains and that is why whatever is the gain amount you'll have to pay profit uh you'll have to pay tax on that that to the rate of flat 30% okay so in this case poor thing we'll have to pay a tax at 30% of 10 lakh Rupees so 3 lakhs plus education CESS 4% okay is there any specific section for that answer is obviously yes if you want you can have a look at this this section is section number 115 BBH
if you want you can pause the screen you can read the whole section and that is where you will understand at least flat 30% Plus CESS of course if applicable surcharge that will also be applicable but all in all big question is that was there a change in the current budget answer is no some people are again getting confused with that 12 lakhs wala thing there is no change earlier also whatever was the way in which cryptos were taxed and whatever is the way the cryptos will be taxed right now will absolutely remain the same
I hope this point is also absolutely clear now let's move on with the last point which is about is there any change in income from House properties the taxation on income from House properties and answer is yes okay again I'll show my amazing drawing skills now I my drawing is very nice house number one okay and this is my house number two beautiful houses right hm both are located in Pune okay now ideally I'm going to stay only in one house so as per the original act I can say this this house property let us
say is self occupied okay SO self occupied house property and for this second house property I was still required to take some value for this in short I was required to pay some tax on this okay see there is something known as GAV gross annual value then there is a concept of some deductions then we arrive at a net annual value again some deductions finally we talk about the taxable value for that house property if I were to understand about how much is the GAV there is a calculation for that Municipal valuation or Fair rent
whichever is higher subject to standard rent are Baba we are not here for income tax class right now okay your CA will help you out with this right but the best thing is that Nirmala Madam in this budget said that you can declare two House properties you can declare up to two House properties as self-occupied so assume I have two houses which I don't have I have only one house but assume I have two houses in Pune both I can claim as self occupied and for that I need not pay any tax okay I'm assuming
none of them is actually given on rent okay both so ispe tala pada hai! it's it's locked house and sometimes I go there let us say okay in this case I will not have to pay any tax here now the best part is that this has become applicable from The Current financial year that is 24-25 or we call that as assessment year 25-26 so this has actually come this has actually become applicable from immediate effect so this is a very good uh you know amendment that was I mean that was proposed in this budget so
uh definitely a welcome move for those people who have two House properties they will be like ma'am what if we have three House properties ladat nahi yaycha! still only two will be eligible to be uh you know uh two will be eligible for SO for self-occupied for the third one you will have to pay tax okay so I hope this point is also absolutely clear I hope you liked this video if you did please don't forget to smash the like button please don't forget to share this video with your friends let me know in the
comment section which stock do you want me to cover in the next video I'll try my level best to cover that in the coming upcoming few videos I hope you found some value in this one till then take care Jay Hind and bye-bye.
