For AY 2026-27, a resident individual under the new regime may receive rebate up to ₹60,000 where total income does not exceed ₹12 lakh, subject to special-rate income restrictions.
Before you act
Only a resident individual can claim Section 87A; HUFs, firms, companies and NRIs cannot.
The new-regime slab starts at ₹4 lakh for FY 2025-26, not ₹3 lakh.
The rebate is applied to tax, not subtracted from income.
Salary income up to ₹12.75 lakh may result in nil regular tax where the ₹75,000 standard deduction and all conditions apply.
Reader-safety correction: The supplied draft is background material, not authority. Competitor links, author promotions, duplicated text and unsupported figures have been removed. Professional review remains pending.
Rebate versus deduction and exemption
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Rebate versus deduction and exemption should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains. In practice, compare at least two plausible treatments and state why one applies. If the evidence is incomplete, pause the filing or transaction and obtain a fact-specific review.
FY 2025-26 new-regime slabs
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. FY 2025-26 new-regime slabs should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains.
Old-regime ₹5 lakh rule
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Old-regime ₹5 lakh rule should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains.
How the ₹60,000 cap works
Use a controlled sequence: collect current records, reconcile them with official data, document assumptions, obtain authorisation, submit through the official channel and preserve acknowledgements. A screenshot or verbal assurance is not durable evidence. How the ₹60,000 cap works should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains. In practice, compare at least two plausible treatments and state why one applies. If the evidence is incomplete, pause the filing or transaction and obtain a fact-specific review.
Marginal relief above ₹12 lakh
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Marginal relief above ₹12 lakh should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains.
Special-rate income exclusion
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Special-rate income exclusion should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains.
Salary and the standard deduction
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Salary and the standard deduction should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains. In practice, compare at least two plausible treatments and state why one applies. If the evidence is incomplete, pause the filing or transaction and obtain a fact-specific review.
Eligibility, filing and calculation examples
For section 87a rebate for fy 2025-26: ₹12 lakh limit, marginal relief and exceptions, separate the rule from the evidence needed to prove compliance. Test the general rule, every stated exception, and any fact that could change the result. Eligibility, filing and calculation examples should be treated as a decision point, not a box-ticking heading. Record who verified the position, which official source and effective date were used, what contrary facts were considered, and what follow-up obligation remains.
Practical evidence checklist
Keep the governing notification or rule, effective-date note, identity and authority documents, transaction records, calculations, filed forms, payment proof, acknowledgements, notices and responses. Add a short reconciliation explaining every material mismatch. Review continuing duties after approval or filing; many registrations, claims and licences fail later because renewal, reporting, display, record or change-notification duties were ignored.
Need a fact-specific review?
Confirm the effective law, documents, filing route and continuing obligations before relying on general guidance.
Request a TargoLegal reviewFrequently asked questions
Can I rely on the supplied older article?
Use it only as a topic prompt. Verify the law, form, rate, threshold and portal route effective on the relevant date.
What is the safest first step?
Identify the exact facts and search the responsible regulator’s current official material before preparing documents or making a claim.
Do portal acceptance and legal eligibility mean the same thing?
No. Technical acceptance does not cure an ineligible claim, wrong classification or missing evidence.
Should I keep supporting records?
Yes. Preserve calculations, source documents, authority, acknowledgements and later correspondence for the applicable retention period.
When is professional review sensible?
Use one where facts are disputed, money or penalties are material, a deadline is close, or the law has recently changed.
