Rebate 87A & Surcharge Calculator

Section 87A / Section 156 (IT Act 2025) · New Regime: ₹60,000 rebate upto ₹12L · Old Regime: ₹12,500 upto ₹5L · Surcharge with marginal relief · FY 2026-27 (AY 2027-28)

📋 Quick Reference — Section 87A Rebate Limits FY 2026-27

New Regime (Default)

Rebate: ₹60,000
Income threshold: ₹12,00,000
Zero tax upto: ₹12,75,000 (with ₹75K std deduction for salaried)
Section: 87A / s.156 (IT Act 2025)

Old Regime

Rebate: ₹12,500
Income threshold: ₹5,00,000
Zero tax upto: ₹5,00,000
Not available to: NRI, HUF, Firms, Companies

⚠ Rebate is NOT available on special rate income (STCG u/s 111A @ 20%, LTCG u/s 112A @ 12.5%). Only regular income qualifies.

Your Tax Details

Tax Regime

New Regime (s.115BAC)
Default from FY 2023-24 onwards

Old Regime
Opted via employer declaration

Total Taxable Income (₹) After all deductions (80C, 80D etc.). This is the income on which tax is computed.

₹

Special Rate Income included above (₹) STCG u/s 111A, LTCG u/s 112A, VDA etc. — rebate NOT available on these

₹

Taxpayer Category

Residential Status

Tax Computation with Rebate & Surcharge

FY 2026-27 (AY 2027-28)

Tax Slabs — FY 2026-27

New Regime (s.115BAC)

Income Range	Rate
Up to ₹3,00,000	NIL
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

Old Regime

Income Range	Rate
Up to ₹2,50,000 (₹3L/₹5L for seniors)	NIL
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Surcharge Rates (both regimes)

Total Income	Surcharge Rate	New Regime Max
Up to ₹50 lakh	NIL	—
₹50L – ₹1 crore	10%	10%
₹1 crore – ₹2 crore	15%	15%
₹2 crore – ₹5 crore	25%	25%
Above ₹5 crore	37% (old) / 25% (new)	25%

Marginal relief available at each surcharge threshold. Health & Education Cess: 4% on tax + surcharge.

📌 Statutory references: s.87A IT Act 1961 (= s.156 IT Act 2025) for rebate. Surcharge: s.2(9A) Finance Act. Cess: s.2 Finance Act 2025.
⚠ Rebate u/s 87A is NOT available to: NRIs / RNORs · HUFs · Partnership Firms · Companies · LLPs · BOIs / AOPs.
⚠ Rebate is NOT available on STCG u/s 111A, LTCG u/s 112A, VDA income, or any income taxable at special rates.
⚠ Marginal relief ensures tax on income marginally above the threshold does not exceed the excess income over the threshold.

About This Tool

The Rebate and Surcharge Calculator computes the income tax rebate under Section 87A and applicable surcharge on income tax for individuals, HUFs, firms, and companies. Section 87A (s.156 of IT Act 2025) provides a rebate of up to ₹12,500 (old regime, income up to ₹5 lakh) or ₹60,000 (new regime, income up to ₹12 lakh) for FY 2026-27. With the ₹75,000 standard deduction, salaried employees in the new regime have zero tax up to ₹12,75,000 income. Surcharge applies at progressive rates: 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr), 37% (above ₹5Cr) — subject to STCG/LTCG cap at 15% under new regime.

How to Use

Enter the taxpayer type and total taxable income.
Select whether old or new tax regime applies.
Enter the income tax computed before surcharge/rebate.
Click Calculate — the tool shows rebate amount (if eligible), surcharge rate and amount, marginal relief (if applicable), health and education cess (4%), and total tax liability.

Frequently Asked Questions

What is marginal relief in surcharge?

Marginal relief ensures that the extra tax due to surcharge does not exceed the income that crossed the surcharge threshold. For example, if surcharge is ₹1,20,000 but the income exceeded the threshold by only ₹80,000, marginal relief of ₹40,000 applies.

Is there surcharge on LTCG/STCG?

Under the new regime, surcharge on LTCG under Sections 112/112A and STCG under Section 111A is capped at 15%, even if the total income attracts higher surcharge.

What is the maximum marginal rate of tax?

For individuals: 30% + 37% surcharge + 4% cess = approximately 42.744%, applicable on income above ₹5 crore under the old regime.

Is the ₹60,000 rebate available under old regime too?

No. The ₹60,000 rebate (Section 87A / s.156 IT Act 2025) for income up to ₹12 lakh applies only under the new regime for FY 2026-27. Under the old regime, rebate remains ₹12,500 for income up to ₹5 lakh only.