New Delhi, Feb. 4 -- Debt mutual fund investors have reason to cheer Budget 2025 after being dealt a huge blow in the previous one.

Finance Minister Nirmala Sitharaman announced on Saturday that Indians with incomes up to Rs.12 lakh will effectively pay no income tax. They still need to pay the tax, but will receive a rebate of Rs.60,000 under Section 87A of the Income Tax Act. However, certain types of income, including capital gains from selling stocks and property, are not eligible for tax rebates.

Let's say Mr A has annual income of Rs.12 lakh. On the surface, it looks like a happy situation since there's no tax on income up to Rs.12 lakh under the new regime. But if only Rs.10 lakh of this is salary income and Rs.2 lakh is from sel...