What is 87A Rebate?

L Posted by: Lokesh
• 16 September, 2025
3 Reply

A rebate is a benefit in taxes which are provided to middle to low-income earners. It is only applicable to resident individuals who are earning income under the 10% slab rate, are allowed or 25,000 INR rebate of income under 7 lakhs INR under the new regime, and 12,500 INR for the income earned under 5 lakhs under the old regime. The individual who has income at this level does not need to pay tax on the earned income.

Tags : 87A Rebate

  • Matriyee Saini 22 September, 2025

    A resident individual is allowed a rebate under section 87A: 

    New Regime:

    • If an individual has a total taxable income of 7 lakhs, then they are eligible for up to INR 25,000 for the financial year 2024-25.  
    • If an individual's taxable income is up to INR 12 lakhs, then they are eligible for a rebate up to INR 60,000 for the financial year 2025-26. 
    • However, the rebate limit should not be more than the total taxable amount before cess in any case. 

    Old Regime: 

    •   If a resident individual has taxable income below 5 lakhs, then they are eligible for a rebate of up to 12,500. 
    • The rebate of a resident individual should not be more than the total tax payable before cess in any case. 

  • Maherzad Patrawala (Maher) 18 September, 2025

    What are the eligibility criteria for the rebate under section 87A? 

    • RM
      rishabh mathur 19 September, 2025

      Here are the eligibility criteria for the rebate under Section 87A: 

       

      • For the rebate, only resident individuals are eligible. 
      • A resident individual whose income is not more than: 

       

      7 lakhs under the new regime. 

      5 lakhs under the old regime.

       

      • The amount of the rebate should be lower according to the specific limit under section 87A before cess or paying Income tax. 
      • You are not eligible for a rebate under section 87A against tax on the long-term capital gains under section 112A. 

       

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