Rebate u/s 87A under new tax regime

how to calculate rebate u/s 87A under new tax regime if total taxable income is 706874/- 

Salary details are as follows: 

Salary (Gross)  -                       839127/-

Less -Standard Deduction        50000/-

Less: Deduction u/s 80 CCD(2) 82253/-

Net Taxable salary                  706874/-

 

Replies (3)
Quick Summary
This discussion clarifies the eligibility for the rebate under Section 87A of the Income Tax Act, specifically within the new tax regime. It explains that while the rebate is available for resident individuals with taxable income up to ₹7 lakh in the new regime (effective April 2023), incomes exceeding this threshold are not eligible. The example provided demonstrates a calculation where the taxable income is above ₹7 lakh, thus disqualifying the individual from the rebate, though marginal relief might apply in certain scenarios.

As per Your query....

Tax on Total Income - Rs. 25,687/-

Rebate u/s 87A - Rs. 18,813/-

Tax Payable - Rs. 6874 + 274 (Cess) = 7149/-
= 7150/-
As per section 87A,Resident individual whose taxable income upto 5lakh under old tax regime is eligible for rebate.
And under new tax regime effective from april 2023, Resident individual whose taxable income is upto 7lakh is eligible for rebate.
Conclusion: In your case you are not eligible for rebate.
He is not eligible for rebate u/s 87a but calculation given by Raja P M is correct. Its called marginal relief. Usually marginal relief is given for asssessees whose incime is more than 50 lakhs. But from AY2024-25 it is extended for assesses whose net taxable income is above 7 lakhs in new regime only

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