February 25, 2026
Section 87A Rebate Clarified No Tax for Salaried Employees on Income Up to Rs. 12.75 Lakh
The recent clarification around the rebate under Section 87A has made the new tax regime far more relevant for salaried Indians, because it effectively takes the income-tax bill to zero for many employees with salary income up to Rs. 12.75 lakh. The key is to understand how the rebate under Section 87A interacts with the standard deduction and the revised slab rates. At the same time, people discussing tax savings also mix up tax deductions with insurance concepts, so it helps to be clear on insurance deductible meaning as well. Rebate under Section 87A and the Rs. 12.75 lakh zero










