Securing Hannav Ledger...
Securing Hannav Ledger...
Glossary
Section 87A rebate reduces income tax liability for resident individuals with income up to specified threshold, benefiting lower middle-income taxpayers.
87A gives a tax discount if your income is below a limit — so many people with modest income pay zero or very little tax.
Rebate amount and income ceiling revised in Finance Acts. Applies after computing tax on total income. Differs from deduction — directly cuts tax payable. Available under both regimes with differing limits historically.
Taxable income ₹7 lakh in new regime: tax computed then 87A rebate may reduce liability to nil if within notified rebate limits for that year.
Resident individuals whose total income falls within notified limit after deductions. Non-residents generally ineligible.
Both regimes may offer 87A but income limits and rebate amounts differ per Finance Act — verify current year notification.
87A typically applies on normal tax computation; special rate capital gains may have separate treatment — check latest IT Act provisions.