Section 87A (Rebate for Individuals)
Definition
Tax rebate for resident individuals reducing total tax liability to zero when taxable income is within specified thresholds: Old Regime ≤ ₹5L; New Regime ≤ ₹12L (FY 2025-26).
In Context
Old Tax Regime: rebate up to ₹12,500 (effectively zero tax if income ≤ ₹5L). New Tax Regime: rebate up to ₹60,000 (effectively zero tax if taxable income ≤ ₹12L; ≤ ₹12.75L gross salary after the ₹75,000 standard deduction). The rebate does not apply to income taxed at special rates (e.g. capital gains under Sections 111A/112A). Not available to non-resident individuals or HUFs.
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⚠️ Disclaimer: This glossary is for educational purposes. Simplify Money provides analytical insights and guidance. We have applied for SEBI RIA registration.
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