Have you ever wondered how people keep saying “[No Tax] Up to ₹12.75 Lakhs?” and still sound confident? Well, you are not alone. In fact, many salaried taxpayers ask the same question every year. Thankfully, FY 2025-26 brings clarity, relief, and a simple explanation. Moreover, Section 87A acts like a safety net that catches your tax before it hits your pocket. Think of it like an umbrella—when the tax rain starts, this rebate keeps you dry. So, let us break it down step by step, clearly, calmly, and conversationally.
Table of Contents
| Sr# | Headings |
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| 1 | Understanding the Buzz Around No Tax Up to ₹12.75 Lakhs? |
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| 2 | What Is Section 87A in Simple Words |
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| 3 | Why FY 2025-26 Is Special for Taxpayers |
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| 4 | New Tax Regime and Section 87A Connection |
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| 5 | How the ₹12.75 Lakhs Figure Is Reached |
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| 6 | Standard Deduction and Its Silent Role |
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| 7 | Step-by-Step Tax Calculation Example |
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| 8 | Who Can Actually Get Zero Tax Benefit |
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| 9 | Common Misunderstandings You Must Avoid |
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| 10 | Old Tax Regime vs New Tax Regime Impact |
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| 11 | Why Middle-Class Earners Benefit the Most |
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| 12 | Planning Tips to Maximise Section 87A |
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| 13 | Things You Should Do Before Filing Returns |
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| 14 | Real-Life Analogy to Understand Section 87A |
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| 15 | Final Thoughts on No Tax Up to ₹12.75 Lakhs? |
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1. Understanding the Buzz Around No Tax Up to ₹12.75 Lakhs?
First of all, the phrase No Tax Up to ₹12.75 Lakhs? did not appear out of thin air. Instead, it comes from a smart combination of slab rates and rebates. Additionally, social media, news headlines, and office discussions pushed this idea into daily conversations. However, the truth lies in understanding the fine print.
2. What Is Section 87A in Simple Words
Simply put, Section 87A gives a rebate on income tax. In other words, if your tax payable falls within the allowed limit, the government wipes it off completely. Therefore, instead of paying tax, you pay nothing. As a result, eligible taxpayers feel instant relief.
3. Why FY 2025-26 Is Special for Taxpayers
Now comes the good part. FY 2025-26 strengthens the new tax regime. Consequently, slab benefits improve. Moreover, the enhanced rebate under Section 87A plays a crucial role. Hence, many people legally reach a zero-tax situation.
4. New Tax Regime and Section 87A Connection
Under the new tax regime, fewer deductions apply. Still, the government compensates by lowering tax rates. Additionally, Section 87A bridges the gap. Therefore, taxpayers earning within limits enjoy full rebate benefits.
5. How the ₹12.75 Lakhs Figure Is Reached
At first glance, ₹12.75 lakhs sounds high. However, once you include the standard deduction of ₹75,000, your taxable income reduces. Then, the slab-based tax applies. Finally, the Section 87A rebate cancels the remaining tax. Thus, No Tax Up to ₹12.75 Lakhs? becomes a reality.
6. Standard Deduction and Its Silent Role
Although often ignored, the standard deduction quietly lowers your taxable income. As a result, your tax calculation starts on a smaller base. Therefore, this deduction works hand in hand with Section 87A.
7. Step-by-Step Tax Calculation Example
Let us assume an income of ₹12.75 lakhs. First, subtract the standard deduction. Next, apply new tax slabs. Then, calculate the total tax. Finally, apply the Section 87A rebate. Interestingly, the final tax payable becomes zero.
8. Who Can Actually Get Zero Tax Benefit
Not everyone qualifies automatically. However, salaried individuals, pensioners, and some professionals benefit the most. Provided they choose the new tax regime, Section 87A works smoothly.
9. Common Misunderstandings You Must Avoid
Many people think income up to ₹12.75 lakhs is always tax-free. That is not fully true. Instead, the rebate applies only after proper calculation. Therefore, blind assumptions may lead to filing errors.
10. Old Tax Regime vs New Tax Regime Impact
While the old regime offers deductions, the new regime simplifies everything. Consequently, Section 87A fits better in the new system. Hence, comparing both regimes before filing is essential.
11. Why Middle-Class Earners Benefit the Most
Middle-income earners feel the biggest relief. Because of stable salaries and standard deductions, they easily fall within rebate limits. Thus, No Tax Up to ₹12.75 Lakhs? mostly benefits this group.
12. Planning Tips to Maximise Section 87A
Always estimate income early. Moreover, choose the right tax regime. Additionally, avoid last-minute confusion. Therefore, smart planning ensures full rebate usage.
13. Things You Should Do Before Filing Returns
Before filing, verify Form 16, confirm regime selection, and recalculate tax. Then, double-check Section 87A eligibility. As a result, errors reduce significantly.
14. Real-Life Analogy to Understand Section 87A
Imagine your tax as a bill at a restaurant. Section 87A works like a discount coupon. If your bill fits the coupon limit, the cashier smiles and charges nothing.
15. Final Thoughts on No Tax Up to ₹12.75 Lakhs?
Ultimately, No Tax Up to ₹12.75 Lakhs? is not a myth. Instead, it is smart tax design. When used correctly, Section 87A rewards honest taxpayers.
Conclusion
To sum up, FY 2025-26 offers genuine relief through Section 87A. Although rules matter, understanding them makes life easier. Therefore, learn, plan, and file wisely.
Frequently Asked Questions (FAQs)
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Does No Tax Up to ₹12.75 Lakhs? apply to everyone?
No, it applies only after proper calculation under the new tax regime. -
Is Section 87A available in the old tax regime?
Yes, but the benefit is higher and clearer in the new regime. -
Does the standard deduction affect Section 87A?
Yes, it reduces taxable income and helps reach zero tax. -
Can professionals also get the Section 87A rebate?
Yes, if income and regime conditions are satisfied. -
Is choosing the new tax regime mandatory for zero tax?
In most cases, yes, for reaching the ₹12.75 lakhs benefit.