Section 87A Rebate Calculator
Check if you're eligible for tax rebate under Section 87A and calculate the rebate amount for AY 2026-27.
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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.