TaxTMI 
TaxTMI 
TaxTMI 
Has the CBDT issued any specific clarification or circular for AY 2025-26 on the quantum of rebate u/s 87A under Section 115BAC?
Should the rebate be interpreted strictly as 100% of tax payable (Rs. 20,000) in this case, subject to the ceiling of Rs. 25,000?
For examination and practical purposes, is it correct to conclude that tax becomes NIL due to the rebate of Rs. 20,000, not Rs. 25,000?
LIKE UPTO 300000- NIL FOR A.Y 25-26
300000 - 700000= 400000*5%= 20000
115BAC RESIDNT INDIVISUAL TOTAL INCOME UPTO 700000 FOR A.Y 25-26
Fahiyaz Ahmmed
Resident individual with Rs. 700,000 income: rebate applied against Rs. 20,000 tax payable results in nil tax. For a resident individual with Rs. 700,000 total income in AY 2025-26, income up to Rs. 300,000 is exempt and the balance taxed at 5% yields Rs. 20,000 tax payable; the rebate is applied against tax payable and, being subject to a higher ceiling, reduces the Rs. 20,000 liability to nil. (AI Summary)