Indian taxpayers will get financial relief from the central government towards paying income tax. According to the Union Budget 2025, people will be exempted from paying any tax for up to Rs. 12,00,000 which is a crucial decision under the major tax reform. If you are also looking to get relief in the tax liability then you need to go through the full article.
Every individual should understand the benefits of Section 87A which allows people to become eligible to get a full rebate in income tax. Therefore, people need more information to get this tax relief. If you also like to gain knowledge on Section 87A Rebate in Budget 2025, then you should collect all the provided information to understand how you can get benefits under this Section.
Section 87A Rebate in Budget 2025
Eligible people will receive tax relief in paying income tax if they meet certain criteria. Therefore, people are highly excited to get this benefit to reduce their tax liabilities and receive this financial relief from the central government. Section 87A Rebate 2025 allows people to reduce their tax liability by up to Rs. 60,000. So, you need to check the information to get this financial relief to overcome the risk of poverty.
Central government initiated a big relief to middle class people in income tax. They have increased the tax-free earnings to a limit of Rs. 12 Lakh. This can allow people to earn to the limit and get tax relief on the whole tax liabilities. This article will explain information on the Section 87A Rebate In Budget 2025 which will reduce your tax liability and prevent paying for your earning up to Rs. 15 lakh for a year. This article also covers other relevant information like tax reduction calculation, Section 87A benefits, and many more.
Section 87A Rebate 2025- Overview
| Article On | Section 87A Rebate in Budget 2025 |
| Country | India |
| Department | Ministry of Finance |
| Beneficiary | Eligible taxpayers |
| Amount | Up to Rs. 60,000 |
| Category | Finance |
| Official Website | financialservices.gov.in |
Who will get the Benefit under Section 87A?
Middle-class people are looking to collect information about tax relief from their income. People earning up to Rs. 12 lakh have a tax liability of Rs. 60,000 that need to pay as income tax. With the announcement of the Finance Minister on Union Budget 2025, taxpayers will not have to pay any tax. Therefore, people are looking to understand who will get this financial support from the government.
So, people need to know that every individual who is earning up to Rs. 12 lakh will get this financial. According to the income tax rate, people earning are taxed according to certain limit. This means people who are earning Rs. 12 lakh or below will not get applied the income tax rate but people earning more will have to maintain each tax rate. Section 87A Benefits will allow people to reduce the overall tax amount to reduce the financial benefits.
Understanding Section 87A
People are looking to receive certain benefits from the central government. According to tax reform, people can get Section 87A Benefit if their annual earnings are not more than Rs. 12 lakh. So, people need to know that they can get financial benefits through rebates in their income tax. Section 87A will be implemented for people earning a certain amount to reduce their income tax to zero. However, there is always an exception where people need to pay taxes.
People can get a full tax liability rebate on their income up to Rs. 12 lakh due to implementing Section 87A Rule that allows people to get sufficient reduction in their tax liability for certain earning people. It can only be applied for certain earnings that are currently up to Rs. 12 lakh. So, you will get a maximum of Rs. 60,000 rebate in your income tax. It can help people to get financial relief that reduces the financial stress and overcome the tax liability.
Tax Reduction Calculation 2025
The central government will allow people to receive certain rebates on their tax liability which can reduce their financial stress. So, people want to understand the calculation behind Section 87A Rebate 2025 which will provide financial relief. You can also understand the calculation behind it to ensure that you will not have to pay income tax on your earnings for up to Rs. 12 lakh.
- You also need to understand the tax liability which can be reduced to zero after applying the Section 87A.
- According to resources, people will get the maximum rebate amount of Rs. 60,000 on their earnings. Previously, this limit was Rs. 12,500.
- You need to know that Section 87A Benefits allows people to reduce their total tax liability which means people will get a maximum Rs. 60,000 rebate.
- However, people earning more than Rs. 12 lakh will face the income tax rate which also covers an income range of 4 to 8 lakh and 8 to 12 lakh.
- From below table, you can understand that people earning up to Rs. 12 lakh will have to pay no income tax. But people earning more than Rs. 12 lakh will have to pay according to their pay range.
Income Tax Rate Table 2025
| Annual income in lakh | Income Tax Rate 2025 in percent | Total Tax Liability after Section 87A (in Rs) |
| 0-4 | 0 | 0 |
| 4-8 | 5 | 0 |
| 8-12 | 10 | 0 |
| 12-16 | 15 | 1,20,000 |
| 16-20 | 20 | 2,00,000 |
| 20-24 | 25 | 3,00,000 |
| 24 and above | 30 | 4,20,000 |
| Official Website | Click Here |
| Homepage | KeralaCoBank.Com |
Samarth Choudhary is a Chief Editor at keralacobank.com. He has overall editorial experience of 10 years in online media. He has completed his graduation from University of California and masters in Finance from University of Dallas in year 2010. His major interest and expertise is in Finance, Taxes, Government Aid and Schemes. His Major focus is to help users to get relevant information which are published on keralacobank.com in easy and precise form.