Budget 2026: Tax Rebate Limit Under Section 87A May Rise to Rs. 15 Lakh?

• Speculation is rife that the Section 87A tax rebate limit could be increased to Rs. 15 lakh in the Union Budget 2026-27, offering significant relief to taxpayers.
• Section 87A provides a direct rebate on tax bills, not a deduction, potentially reducing tax liability to zero for eligible individuals.
• Under the New Tax Regime, a rebate of up to Rs. 60,000 currently applies to incomes up to Rs. 12 lakh, effectively making tax-free income up to this limit.
• Financial experts suggest that an increase to Rs. 15 lakh is unlikely due to the government's significant revenue loss (approx. Rs. 1 lakh crore) from previous new tax regime changes.
• Taxpayers should compare both old and new tax regimes based on their income, investments, and deductions before making a choice, rather than relying on budget speculation.

Why It Matters: Speculation suggests a Section 87A tax rebate increase to Rs. 15 lakh, but experts are skeptical due to revenue concerns.