income-tax

Section 87A Rebate: Eligibility and How to Claim

Understanding Section 87A rebate for individuals with income up to ₹7 lakh. Who qualifies and how it reduces tax to zero.

GetYourCA Team
1 April 2025·Updated 9 April 20261 min read12.5K views
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Section 87A Rebate: Eligibility and How to Claim

What is Section 87A?#

Rebate to reduce tax for low-income individuals.

Eligibility#

  • Resident individual
  • Total income up to ₹7 lakh
  • Tax calculated at regular rates

Rebate Amount#

  • Tax amount or ₹25,000 whichever is lower

How It Works#

Example: ₹6 Lakh Income#

  • Tax = ₹30,000
  • Rebate = ₹30,000
  • Net Tax = ₹0

Example: ₹8 Lakh Income#

  • Tax = ₹60,000
  • Rebate = ₹25,000 (max)
  • Net Tax = ₹35,000

Important Points#

  • Only for new regime
  • Works with all deductions
  • Not for senior citizens (no rebate needed)

Conclusion#

87A rebate reduces tax to zero for eligible individuals.

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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