What this calculator does
This page helps you estimate the likely result for Section 87A Rebate Calculator from the details entered in the calculator below. Treat the output as a planning estimate, not as a substitute for the final filing computation.
Inputs explained
- Total Taxable Income: Use the figure relevant to your case and keep the unit consistent with the form.
- Tax Regime: Use the figure relevant to your case and keep the unit consistent with the form.
- Residential Status: Use the figure relevant to your case and keep the unit consistent with the form.
- Special Rate Income (STCG/LTCG): Use the figure relevant to your case and keep the unit consistent with the form.
How it works / Method
The calculator uses the values you enter, applies the relevant rule logic for this topic, and updates the result summary immediately after calculation.
Formula or calculation logic
Check Rebate Eligibility
Rebate Result
Enter income details to check rebate eligibility.
Step-by-step example
- Enter Total Taxable Income as e.g., 1000000 for a sample case.
- Enter Tax Regime as 0 for a sample case.
- Click the calculate button and review the Rebate Result panel.
Use cases
- Review the likely tax impact before filing or payment.
- Check how changing one input affects the estimate.
- Prepare a cleaner draft working before using the official portal.
Assumptions & limitations
- Results are estimates only and should be checked against the correct FY and AY rules.
- This page does not validate every exemption condition, document requirement, or edge case.
- Verify the latest filing rules before submitting returns, proofs, or tax payments.
Sources & references
Section 87A Rebate Rules (AY 2026-27)
New Tax Regime
Old Tax Regime
Important Points
- Only for Residents: NRIs cannot claim Section 87A rebate
- Not on Special Rate Income: Rebate applies only to income taxed at slab rates, not STCG/LTCG
- Applied Before Surcharge: Rebate is applied after calculating slab tax, before surcharge and cess
- Marginal Relief: If income slightly exceeds ₹12L (new) or ₹5L (old), marginal relief ensures you don't pay more tax than excess income
FAQs
Section 87A provides a rebate (reduction) on income tax for resident individuals with income below specified limits. It effectively makes tax zero for lower income earners.
In new regime for AY 2026-27, if total taxable income is up to ₹12,00,000, you get rebate of up to ₹60,000, making tax effectively zero.
No, Section 87A rebate is available only to resident individuals. Non-residents cannot claim this rebate.
No, rebate under 87A is not available on income taxed at special rates like STCG (20%) or LTCG (12.5%). It applies only to income taxed at normal slab rates.
You lose the entire rebate as income exceeds ₹12L limit. However, marginal relief ensures your tax liability won't exceed the income above ₹12L.
Rebate is applied after calculating tax on slabs but before adding surcharge and cess. Surcharge applies on income above ₹50L anyway.
No, rebate is limited to actual tax payable. If your tax is ₹40,000 and maximum rebate is ₹60,000, you get only ₹40,000 rebate.
Marginal relief ensures that if income slightly exceeds the rebate threshold, your total tax doesn't exceed the amount by which income exceeds the limit.