Income Tax Rebate

Under section 87A of the Income Tax Act, a rebate is a tax benefit available to middle- to low-income earners. It is only for resident individuals whose total income falls within the prescribed threshold. The new tax regime has a tax rebate of Rs 60,000 applicable on income up to Rs 12 lakh. Whereas the income tax rebate of Rs 12,500 is allowed on income up to 5 lakhs under the old tax regime.

The Government offers a rebate to encourage investments, increase disposable income, and promote financial stability. Ensure that the income tax rebate u/s 87A is available only for residents and not HUFs, firms, or NRIs.