Tax · Free tool
Section 87A Rebate Optimizer
New regime FY 2025-26: zero tax up to ₹12L taxable income. Old regime: zero tax up to ₹5L. Marginal relief saves you when income just crosses the threshold.
₹12,00,000
Net tax payable
₹0
Threshold (full rebate)₹12,00,000
Rebate amount₹60,000
87A applicableYes
FAQ
What is the marginal relief?
If your income is just above ₹12L (new regime), tax doesn't exceed (income − ₹12L). So at ₹12.10L, tax is capped at ₹10k — not the ~₹61k it would otherwise be.
Does 87A apply to LTCG?
Income from LTCG is taxed at the special rate (10% / 12.5%) and NOT eligible for 87A rebate. Slab income up to threshold is rebated; LTCG always pays.
Can I switch regimes year to year?
Salaried: yes, via Form 10-IEA every year. Business: no — once opted out of new regime, you can return only once.