New Delhi, Feb. 2 -- "No tax on income up to Rs.12 lakh!" The announcement in the Union Budget 2025, made by finance minister Nirmala Sitharaman on 1 February, was music to the ears of many taxpayers. Take Mr. A, for example, who earns from multiple sources. With a salary, interest income, and capital gains from property sales and the stock market, Mr. A's total income is around Rs.12 lakh-seemingly making him eligible for a significant tax break.

But here's the catch: While Budget 2025 offers a welcome increase in the tax rebate limit, only certain types of income qualify for this benefit. Capital gains, whether from property sales or stock market profits, are excluded from the rebate, meaning Mr. A's tax savings won't be as generous as...