Budget 2026 Income Tax: Section 87A Rebate Limit | New Tax Regime FY 2026-27 | Sanskriti IAS

Budget 2026 Income Tax: Section 87A Rebate Limit | New Tax Regime FY 2026-27 | Sanskriti IAS

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✅Union Budget 2026 has clarified the Section 87A rebate limit under the new income tax regime for FY 2026-27, bringing relief and certainty for middle-class taxpayers.
Under the new tax regime, resident individuals whose net taxable income is up to ₹12 lakh can continue to avail a maximum rebate of ₹60,000 under Section 87A, effectively making their income tax liability zero (excluding cess).

✔ What is Section 87A?
✔ Rebate limit under the new tax regime (FY 2026-27)
✔ Who is eligible for the 87A rebate?
✔ How much tax can be saved?
✔ Comparison with old tax regime

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