Under Section 87A of the Income-tax Act 1961, taxpayers with a total income up to Rs 5 lakh under the old tax regime or up to Rs 7 lakh under the new tax regime are eligible for a tax rebate that can reduce their net payable tax to nil.
For Old Regime, a tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
However, under the new tax regime rebate is up to Rs.25,000 is applicable if the total income does not exceed Rs 7,00,000. (not applicable for NRIs)
NOTE: Income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
up to Rs 3,00,000 for senior citizens aged above 60 years but less than 80 years.
up to Rs 5,00,000 for super senior citizens aged above 80 years.
Surcharge and cess will be applicable over and above the tax rates
Tax rebate equivalent to an amount, tax payable is when the total income exceeds Rs 7,00,000. (not applicable for NRIs)
NOTE: Income tax exemption limit is up to Rs 3,00,000 for Individuals, HUF opting for the new regime. Surcharge and cess will be applicable over and above the tax rates.
