Tax
Rebate under 87A
A rebate that makes income tax effectively zero for those below a set income threshold.
Section 87A gives a rebate that wipes out your tax entirely if your taxable income is under a limit.
Under the new regime, incomes up to ₹7L can end up paying zero tax thanks to this rebate.
Cross the threshold by even a little and you lose most of it, so it can create sharp jumps near the cutoff.
For example
In the new regime, a ₹7L taxable income can mean zero tax due to the 87A rebate, while ₹7.5L suddenly owes a real amount.