Section 87A rebate
A tax rebate that brings tax to nil for incomes up to ₹12 lakh in the new regime and ₹5 lakh in the old.
New regime: up to ₹60,000 off when taxable income is ₹12 lakh or less, with marginal relief just above. Old regime: up to ₹12,500 when taxable income is ₹5 lakh or less.
It doesn't apply to tax on capital gains taxed at special rates, such as gains on listed shares.
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Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.