Income Tax Rebate Calculator (India)
Estimate your tax, rebate under Section 87A, and final payable amount.
What is an income tax rebate?
An income tax rebate is a direct reduction in the tax you owe. In India, this is commonly discussed under Section 87A. If your taxable income is within the prescribed limit, the rebate can reduce your income tax liability partially or fully.
Many people confuse a deduction with a rebate:
- Deduction lowers taxable income (for example, under Section 80C).
- Rebate lowers tax amount after tax is computed.
Rebate limits covered in this calculator
| Financial Year | Regime | Rebate Threshold (Taxable Income) | Maximum Rebate |
|---|---|---|---|
| FY 2024-25 | Old Regime | Up to ₹5,00,000 | ₹12,500 |
| FY 2024-25 | New Regime | Up to ₹7,00,000 | ₹25,000 |
| FY 2025-26 | Old Regime | Up to ₹5,00,000 | ₹12,500 |
| FY 2025-26 | New Regime | Up to ₹12,00,000 | ₹60,000 |
How this income tax rebate calculator works
1) Calculates tax before rebate
The calculator first applies slab rates based on your selected year and regime. If you choose the old regime, age-based basic exemption is included.
2) Applies Section 87A rebate
It then checks whether your taxable income qualifies for rebate. In the new regime, marginal relief logic is included near the rebate threshold so your tax increase is gradual.
3) Adds cess
After reducing rebate, it adds 4% Health and Education Cess to estimate final tax payable.
Quick example
If your taxable income is ₹6,90,000 under FY 2024-25 new regime, your calculated tax may be fully offset by rebate (subject to slab calculation), resulting in very low or nil final payable tax (before considering special cases).
Why this tool is useful
- Helps with salary planning and monthly TDS expectations.
- Makes old vs new regime comparison easier.
- Shows whether you are close to rebate cut-off limits.
- Useful for pre-investment and deduction planning.
Important notes before filing your return
- This calculator does not include surcharge or special tax rates (such as some capital gains).
- Exact tax may differ based on rebate conditions, deductions, exemptions, and rule updates.
- For final filing, always cross-check on the official income tax portal or with your CA.
Frequently asked questions
Does rebate mean I pay no tax at all?
Not always. Rebate only reduces your computed income tax up to a capped amount. If tax exceeds the cap, balance tax remains payable.
Is rebate available in both old and new regimes?
Yes, but the eligibility threshold and maximum rebate amount can differ by regime and financial year.
Should I choose old or new regime?
It depends on your deductions, exemptions, and total income. Use this estimator along with a deduction planner to compare both options.