Rebate u/s 87A in New & Old Tax Regime For FY 24-25

Chaitra Seetharam | Last updated: 17 July 2025

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Section 87A of the Income Tax Act allows resident individuals to reduce their tax payable. For FY 2024-25, those under the old tax regime with income up to ₹5 lakh can get a rebate of ₹12,500, while the new regime offers a ₹25,000 rebate for incomes up to ₹7 lakh. The rebate is automatically calculated when filing your Income Tax Return (ITR) and can result in zero tax liability if your tax payable is within the rebate limit.

Section 87A of the Income Tax Act offers tax reduction to resident individuals when total income falls within specified limits. For FY 2024-25, individuals under the old tax regime with income up to ₹5 lakh can claim a rebate of up to ₹12,500, resulting in zero tax liability. Under the new tax regi

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1 Year PLAN

1999

(Excl. of GST ₹359)

BEST VALUE

2 Years PLAN

3499

(Excl. of GST ₹629)

3 Months PLAN

999

(Excl. of GST ₹179)

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About the Author

Chaitra Seetharam

Finance Professional

I write on Income Tax, TDS, ITR filing, banking rules, investment schemes, and financial law updates in India. My articles simplify complex tax provisions, compliance requirements, and policy changes to help taxpayers, professionals, senior citizens, and businesses stay informed and financially aware.

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