New Budget

Sir, If one has got taxable income above 5 Lakhs, will he get tax rebate of 12500? My query is whether his tax will be calculated from 5 lac or from 2.5 lac as of now if he opts for new regime?
Replies (4)
Quick Summary
This discussion clarifies tax rebate eligibility under the new tax regime (Section 115BAC). It confirms that individuals with taxable income exceeding 5 lakhs are not eligible for the tax rebate under Section 87A. Tax calculations for the new regime still commence from the 2.5 lakh threshold, with specific rates applying to income slabs up to 5 lakhs.

No rebate if income more than 500000... tax to be calculated from 2.5
Thanks madam.
New regime No rebate under 87A
Bcoz basic slab starts from 500000/-
(upto 5 lakhs income - no tax)
For new regime also Tax is calculated from 250000 .
115BAC says upto 250000 -nil,
2.5 L - 5L - 5%
please read 115BAC for clarity purpose.

87A is still available for both old and new tax regime.

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