Tax
What is Section 87A Rebate? — Meaning, Definition & Example
Definition
Section 87A provides a rebate (direct tax reduction) for taxpayers with total income up to a specified limit. Under New Regime (FY 2025-26): rebate up to ₹60,000 for income up to ₹12 lakh. Under Old Regime: rebate up to ₹12,500 for income up to ₹5 lakh. This effectively makes income up to ₹12 lakh tax-free under New Regime.
💡 Real Example
Income of ₹12 lakh under New Regime: calculated tax is ₹60,000 minus ₹60,000 rebate = zero tax payable.
🇮🇳 Section 87A Rebate in Hindi / हिंदी में
धारा 87A छूट — धारा 87A निर्दिष्ट आय सीमा तक के करदाताओं को छूट (प्रत्यक्ष कर कमी) प्रदान करती है। नई व्यवस्था में ₹12 लाख तक शून्य कर।
Section 87A Rebate (Hinglish) — Section 87A ek rebate hai jo specified income limit tak ke taxpayers ko milti hai. New Regime mein ₹12 lakh tak income pe zero tax (₹60,000 rebate).
❓ Frequently Asked Questions
What is Section 87A Rebate in simple words?
Section 87A provides a rebate (direct tax reduction) for taxpayers with total income up to a specified limit. Under New Regime (FY 2025-26): rebate up to ₹60,000 for income up to ₹12 lakh. Under Old Regime: rebate up to ₹12,500 for income up to ₹5 lakh. This effectively makes income up to ₹12 lakh tax-free under New Regime.
Can you give an example of Section 87A Rebate?
Income of ₹12 lakh under New Regime: calculated tax is ₹60,000 minus ₹60,000 rebate = zero tax payable.
What is Section 87A Rebate meaning in Hindi?
In Hindi, Section 87A Rebate is called धारा 87A छूट. धारा 87A निर्दिष्ट आय सीमा तक के करदाताओं को छूट (प्रत्यक्ष कर कमी) प्रदान करती है। नई व्यवस्था में ₹12 लाख तक शून्य कर।