ITR Filing Guide: How to Claim Zero Tax Under Section 87A Rebate

As the financial year progresses, taxpayers must navigate the complexities of the new and old tax regimes to optimize their liabilities. Understanding how to leverage Section 87A can mean the difference between paying significant taxes and achieving a "zero tax" status.

Understanding the Section 87A Rebate

A common misconception among taxpayers is confusing the basic exemption limit with the "zero tax" threshold. While the basic exemption limit defines the income level above which tax calculation begins, the Section 87A rebate is a mechanism that reduces your calculated tax liability to zero if your total income falls below specific thresholds.

Under the current framework, the rebate is applied after the tax is calculated based on applicable slabs but before the addition of cess. This provides substantial relief to resident individuals, effectively neutralizing their tax burden within certain income brackets.

Zero Tax Limits: New vs. Old Regime

The eligibility for a zero tax liability varies significantly depending on which regime you choose for the Assessment Year 2026-27 (FY 2025-26).

The New Tax Regime

The new regime offers much higher thresholds for tax relief. Individuals with a total income of up to ₹12 lakh can claim a rebate of up to ₹60,000. For example, if an individual's taxable income is ₹9 lakh, even though they have crossed the basic exemption limit, the Section 87A rebate will wipe out the calculated tax, resulting in zero liability.

The Old Tax Regime

The old regime is more restrictive. A rebate of up to ₹12,500 is available, but only for individuals whose total taxable income does not exceed ₹5 lakh. This regime relies heavily on deductions like Section 80C and standard deductions to bring the taxable income below this crucial ₹5 lakh mark.

Marginal Relief: Protection for Mid-Level Earners

A critical feature of the new tax regime is "Marginal Relief," designed to protect taxpayers whose income slightly exceeds the ₹12 lakh threshold. Without this relief, a small increase in income could lead to a disproportionately high tax jump.

边际减免确保如果您的收入超过 120 万卢比，应纳税额将被限制在收入超过该限额的精确金额内。然而，这种保护是有限的；只有在总应纳税所得额低于 12,70,588 卢比时才适用。一旦收入超过这一上限，标准税率档次将适用，且不再享有边际减免。

重要例外情况与未来变化

需要特别注意的是，Section 87A 的税收减免并非对所有类型的收入都普遍适用。在新制度下，对于按特殊税率征税的收入（如资本利得或彩票奖金），不能申请该项减免。同样，在旧制度下，该减免也不适用于 Section 112A 项下的长期资本利得。

展望未来，纳税人应留意即将到来的立法变更。《1961年所得税法》中的 Section 87A 将被《2025年所得税法》中的 Section 156 取代，自 2026 年 4 月 1 日起生效。

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