Zero-tax income threshold check. The Rebate u/s 87A Calculator takes taxable income after deductions, tax regime and returns rebate under section 87a plus result, tax by slab before rebate, tax payable including cess. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Indian tax rules change with each Finance Act and GST Council meeting. The rates here follow the current published rules, but confirm the figures on the official portals or with a chartered accountant before filing or invoicing. Use the worked example below to check the maths against your own figures.
How the Rebate u/s 87A Calculator works
Section 87A wipes out the tax for resident individuals below a threshold. In the new regime the threshold is ₹12 lakh of taxable income; between ₹12 lakh and about ₹12.75 lakh marginal relief limits the tax to the amount by which income exceeds ₹12 lakh.
Worked example
With the example values (taxable income after deductions of ₹1,150,000, tax regime "New regime"), the rebate under section 87a is ₹55,000.00; result Eligible: full rebate, zero tax, tax by slab before rebate ₹55,000.00, tax payable including cess ₹0.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
Assumptions and limits: Resident individuals only; taxable income means income after the standard deduction and any deductions.
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Frequently Asked Questions
How is rebate under section 87a calculated?
new regime: full rebate when taxable income ≤ ₹12 lakh (marginal relief just above); old regime: rebate up to ₹12,500 when taxable income ≤ ₹5 lakh.
Which figures do I need?
Taxable income after deductions, tax regime. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Are the rates current?
The calculator uses the rates and rules published for the current financial year and shows them under the result. Rates change with each Budget and GST Council decision, so verify on the official portal before filing.
What assumptions does this calculator make?
Resident individuals only; taxable income means income after the standard deduction and any deductions.
