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.
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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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