Rebate U/s 87A for F.Y. 2025-26 with Automatic Income Tax Preparation Excel-Based Software All in One for Govt and Non-Govt Employees with Form 10E

Have you ever wished taxes could just do themselves? You’re not alone. Income tax can be confusing, especially with changing rules every year. But here’s some good news for Financial Year 2025-26: Rebate under Section 87a might just be your saviour — and when combined with an automatic Excel-based tax preparation software, tax season becomes a breeze. Whether you’re a government or non-government employee, this guide will walk you through it in plain English.

Table of Contents

Sr#	Headings
1	Eligibility Criteria for Section 87a in F.Y. 2025-26
2	Eligibility Criteria for Section 87A in F.Y. 2025-26
3	Maximum Rebate Limit for 2025-26
4	Old vs. New Tax Regime: Which One Applies?
5	Understanding Form 10E and Why It Matters
6	How the Excel-Based Tax Software Works
7	Benefits of Using Automatic Tax Software
8	Special Features for Govt Employees
9	Useful Functions for Non-Govt Employees
10	Common Mistakes and How to Avoid Them
11	Security of Your Financial Data
12	Step-by-Step Guide to File Taxes Using Excel Tool
13	Where to Download the Excel-Based Tool
14	Important Deadlines for F.Y. 2025-26
15	Conclusion and Final Thoughts

1. What is Rebate U/s 87a?

A rebate under Section 87a is like a discount coupon on your tax bill. If you meet certain conditions, the government allows you to reduce your total tax liability. For salaried individuals, this small provision can lead to big savings.

2. Eligibility Criteria for Section 87a in F.Y. 2025-26

To get this rebate, you must:

Be an individual taxpayer (not HUF or firm).
Be a resident Indian.
Have a total taxable income below the threshold limit.

For F.Y. 2025-26, this limit is ₹7,00,000 under the new tax regime. That means if your income doesn’t exceed ₹7 lakh, you don’t owe any income tax, thanks to this rebate.

3. Maximum Rebate Limit for 2025-26

Under Section 87A, the rebate amount has been set at ₹25,000 for those opting into the new tax regime. This essentially means zero tax liability for those earning ₹7 lakh or less.

4. Old vs. New Tax Regime: Which One Applies?

Here’s where many people get confused. The rebate under 87a applies to both tax regimes, but the limits and tax slabs are different:

Old Regime: You can still claim deductions like 80c, 80d, HRA, etc.
New Regime: No deductions allowed, but lower tax rates and the ₹7 lakh rebate.

So, ask yourself: Do I want simplicity or deductions?

5. Understanding Form 10e and Why It Matters

Form 10E helps you claim relief under Section 89(1) — basically for arrears or back pay. Filing Form 10e is mandatory if you’re claiming such relief. And guess what? The automatic Excel software we’ll talk about includes this form!

6. How the Excel-Based Tax Software Works

Imagine having a digital tax assistant. That’s exactly what this tool is:

Auto-calculates tax based on your income and regime choice.
Includes Form 10e, salary structure, rebate calculator, and more.
Designed specifically for F.Y. 2025-26.

You enter your data, and it does the rest—faster than you can make a cup of tea.

7. Benefits of Using Automatic Tax Software

Why go manual when Excel can do the heavy lifting?

Error-free calculations
Faster tax filing
Helps avoid penalties
Customizable for different types of employment

It’s like using GPS instead of reading a paper map!

8. Special Features for Govt Employees

Government employees often have complex pay structures. This Excel tool includes:

DA, TA, HRA, and other allowances
Special forms aligned with central and state govt norms
Auto-fill for Form 16 and Form 10E

9. Useful Functions for Non-Government Employees

Private sector folks aren’t left out. The software supports:

Bonuses, incentives, variable pay
Employer-provided benefits
Salary breakup compatible with IT returns

10. Common Mistakes and How to Avoid Them

Mistakes can cost money. Here are a few to dodge:

Forgetting to file Form 10e after claiming arrear relief
Choosing the wrong tax regime
Not updating the latest deductions and exemptions

The tool warns you if something’s off, like a digital watchdog.

11. Security of Your Financial Data

Worried about privacy? The Excel tool is:

Offline (no internet access needed)
Password-protected
Built with macros that are safe and virus-free

Your data stays with you, just like a diary under lock and key.

12. Step-by-Step Guide to File Taxes Using Excel Tool

Download the tool from the link below
Enter personal details
Input salary and deductions
Choose a tax regime
Check 87a rebate status
Generate Form 10e if required
Review and print the computation

That’s it—you’re done!

13. Where to Download the Excel-Based Tool

Download this Excel Tool from the link below

14. Important Deadlines for F.Y. 2025-26

Mark your calendar:

Form 10e: Before filing a return, if claiming relief
ITR Filing: Usually by 31st July 2026
Form 16 from the employer: By 15th June 2026

Don’t wait till the last moment. Beat the deadline like a pro.

15. Conclusion and Final Thoughts

Tax season doesn’t have to feel like solving a Rubik’s cube. With the Section 87a rebate, many of you may end up paying zero tax. Pair that with the Excel-based automatic tax software, and suddenly, taxes don’t look so scary. Government or private—this tool makes your financial life easier, safer, and smarter.

FAQs

1. Who can claim the rebate under Section 87a for F.Y. 2025-26?
Any resident individual with total income up to ₹7,00,000 under the new tax regime is eligible.

2. Is Form 10e mandatory for claiming arrear relief?
Yes, if you’re claiming relief under Section 89(1), you must file Form 10e before filing your return.

3. Can I use the Excel tool if I’m self-employed?
It’s primarily built for salaried employees, but with tweaks, it can suit freelancers too.

4. Where can I get the Excel-based automatic tax software?
You can download the Excel Utility from the link below.

5. Do I still need a CA if I use the software?
Not necessarily. The tool is user-friendly. But if your case is complex, a CA’s help is recommended.