What is Section 87A?
Section 87A of the Income Tax Act provides a tax rebate to reduce tax liability to zero for individuals earning below a certain threshold. This rebate is available only to resident individuals.
Section 87A Rebate Limits for FY 2025-26
- New Regime: Income up to ₹7,00,000 eligible for rebate up to ₹25,000
- Old Regime: Income up to ₹5,00,000 eligible for rebate up to ₹12,500
Rebate under Section 87A is directly deducted from your tax liability, not from taxable income.
Who Can Avail?
- Resident individuals (including senior citizens)
- Not applicable to HUFs, companies, or firms
- Available only if total income is within rebate limit after deductions
How to Claim Section 87A Rebate?
The rebate is automatically calculated when you file your Income Tax Return (ITR). You can use our TDS Calculator to check if you qualify and how much tax you can save.