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Section 87A Rebate Calculator

The section 87A rebate and the cliff at its limit. One rupee of extra income can cost tens of thousands, which is the sharpest edge in Indian personal tax.

Also called: section 87a rebate, tax rebate limit.

₹
Regime
Tax year
Rebate under section 87A
₹60,000

₹60,000 of rebate, leaving ₹0 payable on 12,00,000. You are within the limit, so the rebate applies. One rupee more would cost 62400.16.

Tax before the rebate
₹60,000
Tax payable
₹0
Income limit for the rebate
₹12,00,000
Tax if you earned exactly the limit
₹0
Cost of earning one rupee past the limit
₹62,400
About the cliff
You are within the limit, so the rebate applies. One rupee more would cost 62400.16.
How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

The rebate cancels the liability outright up to the income limit and disappears completely one rupee beyond it. That makes it a cliff rather than a taper, so income just above the limit is taxed in full with no relief. The cost of earning one rupee more is shown explicitly, because it is the number that makes the shape of the provision obvious and it is worth knowing before accepting a small raise or a small bonus near the threshold.

the rebate applies in full up to the limit and vanishes entirely one rupee past it
I
Taxable income (currency)
L
Income limit (currency)
R_max
Maximum rebate (currency)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

exactly at the limit pays nothing

Taxable income after deductions
₹12,00,000
Regime
New regime
Tax year
FY 2025-26 (AY 2026-27)

Rebate under section 87A₹60,000

The definitional case for the new regime

Open this example

one rupee over loses the whole rebate

Taxable income after deductions
₹12,00,001
Regime
New regime
Tax year
FY 2025-26 (AY 2026-27)

Rebate under section 87A₹0

boundary: the cliff, worked by hand as 60,000.15 plus 4% cess

Open this example

Method and limits

What it assumes

  • A resident individual, on taxable income after all deductions.

What it deliberately does not model

  • Marginal relief on the rebate cliff has been introduced in some years and is not applied here.
  • The rebate does not apply to income taxed at special rates such as capital gains.

Sources

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why does one rupee cost so much?
Because the rebate is all or nothing. Below the limit it cancels the whole liability; above it, nothing is rebated and the full slab tax applies.
Can I avoid the cliff?
Deductions that bring taxable income back under the limit are worth far more than their face value near the threshold, which is exactly where a small contribution has an outsized effect.