Understanding Income Tax Rebate under Section 87A: Simplifying Your Tax Savings

Summary

The blog explores Section 87A, a tax rebate aimed at reducing tax liability for eligible taxpayers by offering a set cap on rebates under both old and new regimes for incomes up to specified limits. It details eligibility criteria, calculation examples, claim procedures, and historical contexts. The guide aims to help taxpayers optimize filings using ClearTax offers.

Key Takeaways

Section 87A helps reduce tax liability for eligible incomes.
Different rebate caps apply: Rs 12,500 for the old regime and Rs 25,000 for the new regime.
The blog provides practical examples and step-by-step claim procedures.
Historical comparisons help explain changes in rebate amounts over the years.