Rebate under Section 87A of Income Tax Act: Section 87A | Rebate under Section 87A of Income Tax Act | Section 87a | Relief us 87a
Section 87a of the Income Tax Act was introduced in Finance Act, 2013. The section was introduced to provide benefits to individuals whose total net income is below Rs.5,00,000 (Rs. 3,50,000 from F.Y 2017-18)
Section 87A of Income-tax Act, provide for a rebate of an amount equal to hundred percent of such income-tax or an amount of Rs. 5000/- (Rs. 2500 from Financial Year 2017-18), whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed 3,50,000
Rebate under Section 87A of Income Tax Act: Section 87A
The rebate under section 87a is available only to individual assessee and not to members of Hindu United Families, AOP/BOI, Firm and Company. Also, the aggregate amount of rebate should not exceed the amount of income tax computed before the rebate on total income of the individual with which they are chargeable for that assessment year.
|S. No.||Financial Year||Rebate|
Few Examples to understand rebate u/s 87A on Income Tax:
|Total Income||Tax payable before cess||Rebate u/s 87A (max allowable)||Tax Payable + education cess|
Key Points of Section 87A of the Income Tax Act, 1961:
Listed below are the key points of Section 87A of the Income Tax Act, 1961.
- Amended section 87A is applicable from 1st April of that financial year, it is applicable to the assessment year and its subsequent assessment years
- Maximum Rebate amount Rs. 5000 (Rs. 2500 from F.Y 2017-18)
- Only Indian residents can avail the rebate, NRIs are not eligible for the rebate
- Both male and female assesses are eligible for the rebate
- Rebate benefit is not available to super senior citizens
- This rebate is deducted from total tax before adding Education Cess (3%).
You may also refer:
Tags: rebate u/s 87a for ay 2018-19, income tax 87a for ay 2018-19,deduction from tax sec 87a restricted to, section 87a of income tax act pdf, 87a rebate for fy 2017-18 pdf, tax rebate for fy 2018-19, d2 rebate u s 87a, tax rebate meaning, relief us 87a for the ay 2017 18, income tax rebate 2017-18, rebate u/s 87a for ay 2018-19, rebate under section 87a for ay 2019-20, rebate u/s 87a for fy 2018-19, income tax rebate for ay 2018-19, income tax slab for ay 2018-19, income tax slab for ay 2018-19 pdf,Rebate under Section 87A of Income Tax Act,1961, Section 87A, 87a, section 87a income tax, Rebate under Section 87A of Income Tax Act,1961