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Rebate Calculator

Calculate tax rebate under Section 87A

Last Updated: July 2026
Income after deductions
Rebate limits differ by regime
Tax Before Rebate
—
Calculated tax
Rebate Under 87A
—
Available rebate
Final Tax Payable
—
After rebate

Rebate Calculation

ComponentValue

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What Is a Rebate Calculator?

A Rebate Calculator computes the tax rebate available under Section 87A based on your taxable income and chosen tax regime. It shows whether you qualify for the rebate and how much tax you save.

Section 87A rebate makes income tax zero for individuals with income up to ₹7 lakh in the new regime and ₹5 lakh in the old regime. This calculator helps you understand if you qualify for this benefit.

Rebate Formula

New Regime: Rebate = Min(Tax, ₹25,000) if income ≤ ₹7L
Old Regime: Rebate = Min(Tax, ₹12,500) if income ≤ ₹5L
Final Tax = (Tax - Rebate) + Cess (4%)
Tax = Before rebateRebate = Under Section 87AFinal Tax = After rebate + cess

Frequently Asked Questions

What is rebate under Section 87A?
Section 87A provides a rebate to reduce tax liability for individuals with income below specified limits. New regime: Full rebate if income ≤ ₹7 lakh (max ₹25,000). Old regime: Full rebate if income ≤ ₹5 lakh (max ₹12,500).
Who is eligible for rebate?
Resident individuals with total income below ₹7 lakh (new regime) or ₹5 lakh (old regime) are eligible for rebate. NRIs, HUFs, and firms are not eligible. The rebate is available only if taxable income (after deductions) is within the limit.
What is the maximum rebate amount?
New regime: Maximum rebate of ₹25,000 (makes tax zero for income up to ₹7 lakh). Old regime: Maximum rebate of ₹12,500 (makes tax zero for income up to ₹5 lakh). If income exceeds the limit, no rebate is available.
Is cess calculated on tax after rebate?
Yes, health and education cess of 4% is calculated on the tax amount after claiming rebate under Section 87A. So if rebate reduces tax to zero, cess is also zero. This is why individuals with income up to ₹7 lakh pay zero tax in new regime.
Can I claim rebate if I have TDS?
Yes, rebate is available regardless of TDS deducted. If TDS exceeds your actual tax liability (after rebate), you get a refund while filing ITR. The rebate reduces your tax liability, and excess TDS is refunded.

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