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 ≤ ₹7L (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 ₹25,000 (effectively zero tax if income ≤ ₹7L). Not available to non-resident individuals or HUFs.

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