INCOME TAX2 Sept 2026
CBDT Clarifies Section 87A Rebate for AY 2025-26
CBDT has issued an official circular clarifying how marginal relief should be calculated under Section 87A of the Income Tax Act for AY 2025-26. The clarification applies to resident individuals under the New Tax Regime whose taxable income is slightly above Rs 7 lakh. The circular focuses on the rebate rules and the method for working out marginal relief in such cases. Taxpayers in this category should review the clarification before filing.
Key Statutory Highlights
- CBDT issued an official circular on Section 87A rebate rules.
- The clarification covers AY 2025-26 under the New Tax Regime.
- It explains marginal relief for resident individuals with taxable income slightly above Rs 7 lakh.
Actionable Advice for Taxpayers / Founders:Resident individuals in this category should review the clarification before filing.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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