This paper is an attempt to understand equity through section 12(1)(c) of the Right to Education Act in India which aims to reserve 25% seats for economically weaker sections and disadvantaged groups in private schools. The paper is divided into four parts. Firstly, equity is conceptualized using Unterhalter’s (2009) concepts of equity from above, equity from middle and equity from below and Maitzegui-Onate & Santibanez-Gruber’s (2008) concepts of horizontal and vertical equity. I apply these different forms of equity to section 12(1)(c) of the Right to Education Act in India which is an example of ‘equity from above’ and is an equalising measure in the form of ‘vertical equity’. Secondly, Sen’s (1992) capability approach is discussed to explore the inequalities in capabilities of individuals to make effective use of educational resources. Drawing on the works of several scholars who have outlined this approach, I argue that taking individual capabilities into account is essential for achieving equity in education. Thirdly, I discuss Bourdieu’s (1986) theory of different forms of capital to understand structural inequalities and its impact on educational experiences. Due to lack of cultural capital, the educational experiences of children from socially and economically disadvantaged backgrounds vary greatly in comparison to children from economically better sections of the society. I establish links between Unterhalter’s forms of equity, capabilities, forms of capital and functionings in order to depict how equity can be achieved in implementing educational policies. In the final part of the paper, I draw on empirical studies to explore the challenges associated with the implementation of the section 12(1)(c) of the RTE Act in India. This paper highlights how RTE 12 (1)(c) succeeds in promoting the availability of resources to the most disadvantaged in the society as well as raises concerns over the inclusive capabilities needed to promote equity of education.