Section 87A → Section 155
Rebate of income-tax in case of certain individuals
Quick Answer
Section 87A of the Income Tax Act, 1961 (Rebate of income-tax in case of certain individuals) corresponds to Section 155 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 87A
Under the Income Tax Act, 1961, Section 87A governs rebate of income-tax in case of certain individuals. Provides a tax rebate effectively making income up to a certain limit (e.g., Rs. 5 Lakhs or Rs. 7 Lakhs under new regime) entirely tax-free.
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 87A is retained and renumbered as Section 155 of the Income-tax Act, 2025. Retained as the primary mechanism for the zero-tax threshold in the simplified tax regime.
The transition impact on Section 87A is assessed as Critical. This section alone defines whether middle-class taxpayers pay tax or not.
Sec 87A
Provision Summary
Provides a tax rebate effectively making income up to a certain limit (e.g., Rs. 5 Lakhs or Rs. 7 Lakhs under new regime) entirely tax-free.
Sec 155
Provision Summary
Retained as the primary mechanism for the zero-tax threshold in the simplified tax regime.
Key Changes & Highlights
- Rebate algorithms are hardcoded into the portal to ensure it does not accidentally offset special rate taxes like Crypto gains.
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Frequently Asked Questions
Which subject does Section 87A of the 1961 Act cover?
Section 87A of the Income Tax Act, 1961 covers rebate of income-tax in case of certain individuals. Provides a tax rebate effectively making income up to a certain limit (e.g., Rs. 5 Lakhs or Rs. 7 Lakhs under new regime) entirely tax-free.
What is the new section number for Section 87A under the Income-tax Act, 2025?
Section 87A of the Income Tax Act, 1961 maps to Section 155 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained as the primary mechanism for the zero-tax threshold in the simplified tax regime.
How does the Income-tax Act, 2025 affect Section 87A in practice?
The transition impact for Section 87A is rated Critical. This section alone defines whether middle-class taxpayers pay tax or not.
What is new about Section 87A under the Income-tax Act, 2025?
Rebate algorithms are hardcoded into the portal to ensure it does not accidentally offset special rate taxes like Crypto gains. These points are specific to Section 87A (Rebate of income-tax in case of certain individuals).
Disclaimer: This mapping of Section 87A (Rebate of income-tax in case of certain individuals) to Section 155 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 87A is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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