Under the new regime, the rebate is up to ₹60,000, and marginal relief ensures that someone earning slightly above ₹12 lakh never pays more tax than the income above ₹12 lakh. Under the old regime the rebate is up to ₹12,500, with no marginal relief. The rebate does not apply to income taxed at special rates, such as certain capital gains.
Finance glossary
What is Tax rebate (Section 87A)?
A rebate that cancels income tax for resident individuals whose taxable income is below a limit: ₹12 lakh under the new regime and ₹5 lakh under the old.