Section 87A Rebate

Section 87A of the Income Tax Act 2025 provides a rebate to reduce your tax to zero if your total taxable income does not exceed ₹12 lakh in a year. The rebate is limited to the tax payable — so if your tax before rebate is ₹45,000, the rebate is ₹45,000, not the full ₹60,000 maximum. This is one of the most valuable benefits for middle-income earners under the new tax regime and is claimed directly in your ITR.