Tax Rebate

By Simplify Money Team

Definition

Direct reduction in tax liability (not a deduction from income). Section 87A provides a rebate based on taxable income thresholds that differ by tax regime.

In Context

Old Tax Regime: Section 87A rebate up to ₹12,500 if taxable income ≤ ₹5L (effectively zero tax). New Tax Regime: rebate up to ₹60,000 if taxable income ≤ ₹12L. Applies to resident individuals only.

Related Terms

section-87a tax-slab section-80c old-tax-regime

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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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