# The Finance Act, 2025, Section 20: Amendment of section 87A

- Act: The Finance Act, 2025 (Act 7 of 2025)
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/finance-act-2025/section/20/

## Text

Amendment of section 87A. 20. In section 87A of the Income-tax Act, with effect from the 1st April, 2026,— (a) | in the proviso,— (i) | in clause (a),— (I) | for the words "seven hundred thousand rupees", the words "twelve hundred thousand rupees" shall be substituted; (II) | for the words "twenty-five thousand rupees", the words "sixty thousand rupees" shall be substituted; (ii) | in clause (b), for the words "seven hundred thousand rupees" at 1[all] the places where they occur, the words "twelve hundred thousand rupees" shall be substituted; (b) | after the proviso, the following proviso shall be inserted, namely:— "Provided further that the deduction under the first proviso, shall not exceed the amount of income-tax payable as per the rates provided in sub-section (1A) of section 115BAC.". 1. Substituted for "both" by the Finance Act, 2026, w.r.e.f. 1-4-2025.

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