Pending professional review. This content was drafted with Claude from official sources and has not yet been reviewed by an ArthaKara professional. Verify against the official sources before relying on it.
Simple meaningA tax reduction that makes tax nil for resident individuals below an income limit.
Relevant ActIncome-tax Act, 1961 / Income-tax Act, 2025
Section / ruleSection 87A (1961) / Section 156 (2025)
Technical meaning
Rebate of tax for resident individuals whose total income does not exceed the prescribed limit: Rs 12 lakh and Rs 60,000 under the new regime from FY 2025-26; Rs 5 lakh and Rs 12,500 under the old regime.
Practical example
Taxable income of Rs 11.5 lakh under the new regime results in nil tax on normal income.
Related terms
Official reference
Income-tax Act, 1961 / Income-tax Act, 2025, Section 87A (1961) / Section 156 (2025)
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