ThynkTax /Tax Reference /Case Laws /AAR - Section 157 rebate

AAR - Section 157 rebate

Authority for Advance Rulings·2026·ITR
Facts

Applicant sought scope of Section 157 (formerly 87A) rebate under IT Act 2025.

Issue

Application of rebate to taxpayers with mixed income.

Held

Section 157 rebate is computed on total tax payable; special-rate income forms part of the computation unless explicitly excluded by sub-sections. Total-income threshold (₹12 lakh under new regime, ₹5 lakh under old) is the eligibility gate.

Ratio

Rebate is mechanical given total income; threshold drives eligibility.

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