Tax Rebate
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 ₹25,000 if taxable income ≤ ₹7L. Applies to resident individuals only.
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