AY 2026-27 rebate framework
- New regime: resident individual rebate up to Rs. 60,000 where taxable income does not exceed Rs. 12,00,000.
- Old regime: resident individual rebate up to Rs. 12,500 where taxable income does not exceed Rs. 5,00,000.
- NRIs are not eligible for section 87A rebate.
Do not apply rebate blindly
- Income under sections 111A, 112, 112A and VDA/special-rate schedules needs separate computation in the ITR utility.
- If gross salary is Rs. 12.5 lakh, first reduce eligible standard deduction; the rebate check is on taxable income, not gross salary.
- If taxable normal income is within the rebate limit but special-rate income exists, use the official utility/computation to confirm the payable amount.
Applicable year and source discipline
Last fact-checked: 25 May 2026.
AY 2026-27 means FY 2025-26 income and is still filed under the Income-tax Act, 1961 using forms/instructions for that assessment year. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. The two should not be mixed.
Where this page discusses a new form, rate, portal label or transition item, treat it as usable only when supported by the live e-filing portal, a CBDT notification, the Income Tax Department guidance page, the supplied Act PDF, or ICAI material.
What a serious tax expert should verify
- Financial year, assessment year or tax year being handled.
- Residential status, age category, taxpayer type and whether business/professional income exists.
- Correct ITR form, utility validation rules and schedule requirements.
- AIS, TIS, Form 26AS, Form 16/Form 16A, TDS/TCS credits and advance-tax challans.
- Special-rate income such as section 111A, 112, 112A or VDA before applying section 87A rebate.
- Whether a claim is notified law, portal functionality, a draft/proposal, or a competitor summary.
FAQs
Which year should I use for Section 87A Rebate - Special Rate Income Restriction?
Use AY 2026-27 for FY 2025-26 income under the Income-tax Act, 1961. Use Tax Year 2026-27 for FY 2026-27 income under the Income Tax Act, 2025.
What documents should I share with a tax expert?
Share the portal screenshot, exact year, income breakup, certificates, AIS/Form 26AS, notices, challans and any computation already prepared.
Can WorkIndex help me find a specialist?
Yes. Post a requirement with the legal year, records and deadline so experts can quote on the real issue instead of a generic page title.