Section 87A Rebate Explained: Pay Zero Tax up to Rs 12 Lakh Income

Section 87A Rebate Explained: How to Pay Zero Tax up to Rs 12 Lakh Income in AY 2026-27

If you file an income tax return for F.Y 2025-26 (A.Y 2026-27), then Section 87A rebate can help you save taxes. The rebate is applicable if your total income is less than or equal to Rs 12 lakh.

Eligibility Criteria for Section 87A Rebate:

• Total income should be less than or equal to Rs 12 lakh.
• You should file an income tax return for the relevant assessment year.
• You should not have any outstanding tax demands or dues.
• You should not be a non-resident Indian or a foreign national.

Tax-Saving Strategies under Section 87A:

• Claim all eligible deductions and exemptions.
• Invest in tax-saving instruments like PPF, ELSS, or NPS.
• Use 80C deductions to save taxes.
• Use 80D deductions to save taxes on health insurance premiums.