India · Income tax
Section 87A rebate and marginal relief.
Enter your taxable income under the new regime. The tool shows slab tax, the rebate, and the marginal relief that stops a small excess over ₹12 lakh from costing more than the excess itself.
Up to ₹12,00,000 taxable income the rebate (max ₹60,000) wipes out the tax. Above it, tax is limited to the income over ₹12,00,000, until slab tax is lower anyway at about ₹12,70,588. At ₹12,10,000 taxable the estimate is ₹10,400 with cess.
Inputs
Runs in your browser. Nothing you type is sent anywhere or stored.
Result
Fill the form and press Calculate rebate.
Worked example
Taxable income ₹12,10,000. Slab tax = ₹60,000 (up to ₹12,00,000) + 15% of ₹10,000 = ₹61,500. Income above ₹12,00,000 is ₹10,000, so tax after relief is limited to ₹10,000; cess 4% adds ₹400, total ₹10,400. Without relief the tax would be ₹63,960 with cess.
How it works
The Income Tax Department lists a section 87A rebate of up to ₹60,000 in the new regime where taxable income does not exceed ₹12,00,000. For income above the limit, CBDT’s return validation rules say the rebate cannot be claimed “subject to marginal rebate”. This tool models marginal relief the usual way: tax payable (before cess) is the lower of the slab tax and the amount by which taxable income exceeds ₹12,00,000.
This tool assumes a resident individual with ordinary slab income only; capital gains and other special-rate income follow separate rules and are not modelled. The old-regime rebate (₹12,500 up to ₹5,00,000) is in the old vs new regime calculator.
Sources
Figures were read from these official pages in October 2026 (retrieved 15 October 2026). This tool is an independent estimate: it does not query any government system, is not affiliated with any tax authority, and does not verify anything with one. For a figure you will rely on, use the authority’s own calculator or tables.
- Income Tax Department: slabs, rebate, surcharge and cess for AY 2026-27
- PIB: no income tax up to Rs 12 lakh under the new regime, Rs 12.75 lakh for salaried (Union Budget 2025-26)
- CBDT ITR-4 validation rules AY 2026-27 (87A rebate above Rs 12 lakh subject to marginal rebate)
- Income Tax Department: standard deduction for salaried employees
FAQ
What is marginal relief under section 87A?
When taxable income is just over ₹12 lakh, the tax is limited to the amount of income above ₹12 lakh, so earning a little more never leaves you worse off by more than the extra income.
Up to what income does marginal relief apply?
Until slab tax is lower than the income above ₹12 lakh, which happens at about ₹12,70,588 of taxable income.
How much is the 87A rebate in the new regime?
Up to ₹60,000, where total taxable income is ₹12 lakh or less, as listed by the Income Tax Department for AY 2026-27.
Does this tool cover capital gains?
No. It handles ordinary slab income of a resident individual only. Special-rate income follows separate rules, so check the Income Tax Department for those.