STCG (short-term capital gain)

Short-term gains on listed equity and equity funds, where securities transaction tax was paid, are taxed at a special rate: 20% for transfers from 23 Jul 2024. Other short-term gains are added to your income and taxed at your slab rate.

The 87A rebate does not cover gains taxed at a special rate, so a short-term equity gain can be taxable even when the rest of your income is not.