Income Tax07 July 2026· 1 min read

Section 87A Rebate: Zero Tax up to ₹7 Lakh

Under the new regime, a rebate under section 87A makes income up to ₹7 lakh effectively tax-free.

Section 87A gives a rebate that wipes out your tax up to a threshold. Under the new regime, resident individuals with taxable income up to ₹7 lakh get a rebate of up to ₹25,000 — meaning zero tax.

  • Under the old regime, the rebate is up to ₹12,500 for income up to ₹5 lakh.
  • The rebate applies to tax before cess.
  • It is available only to resident individuals, not NRIs or companies.

This is general information, not professional advice — confirm the current position for your specific case before acting.

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