The Union Budget 2025 introduced a significant tax relief measure, making annual income up to Rs 12 lakh tax-free under the new tax regime. This benefit, however, specifically applies to 'normal income' like salary or business earnings and excludes 'special rate income,' such as capital gains. With Budget 2026 approaching, taxpayers need to understand this distinction to determine their actual tax liability, as income including capital gains may still be taxable despite falling within the Rs 12 lakh threshold.