Income Tax Rebate Under Section 87 A

Income Tax Rebate under Section 87 A

What is rebate under section 87A and who can claim it?      

​​​An individual who is resident in India and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs. 2,500. In other words, if the tax liability exceeds Rs. 2,500, rebate will be available to the extent of Rs. 2,500 only and no rebate will be available if the total income (i.e. taxable income) exceeds Rs. 3,50,000.

Assessment Year 2017-18

Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.

Assessment Year 2018-19

Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.

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