Tax rebate
A cut in your tax bill for lower incomes, which can bring the tax to zero.
A tax rebate is money taken off your tax bill, for people with lower incomes. It’s why regular income up to 12 lakh rupees owes no tax under the new regime. Read more in old vs new tax regime.
Questions people ask
What is the tax rebate under the new regime?
Up to 60,000 rupees, for taxable income up to 12 lakh rupees, per the Income Tax Department. In effect, regular income up to 12 lakh owes no tax. For salaried people, the 75,000 rupee standard deduction stretches that to 12.75 lakh of salary. Check the current rules.
What is the tax rebate under the old regime?
Up to 12,500 rupees, for taxable income up to 5 lakh rupees, per the Income Tax Department.
Is the rebate the same as a deduction?
No. A deduction lowers your taxable income. A rebate is taken off the tax itself, after it's worked out. The familiar 87A rebate now sits in a new section of the Income-tax Act, 2025, but works the same way.
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