A rebate is one of the income tax provisions that help taxpayers reduce their tax liability. Taxpayers earning an income under a certain limit have the benefit of paying marginally lower taxes.<\/p>\n\n\n\n
Let\u2019s know the rebate available under section 87A in detail:<\/p>\n\n\n\n
You can claim the benefit of rebate under section 87A for FY 2020-21 only if the following conditions are fulfilled:<\/p>\n\n\n\n
The tax rebate is limited to Rs 12,500. if your total tax payable amount is less than Rs 12,500, then you will not have to pay any tax.<\/p>\n\n\n\n
Do not that the rebate will be applied to the total tax before adding the health and education cess of 4%.<\/p>\n\n\n\n
Examples of section 87A\u00a0<\/strong><\/p>\n\n\n\n If filing the income tax returns for FY 2017-18 or FY 2018-19, the acceptability guidelines to claim tax rebate under section 87A are as under:<\/p>\n\n\n\n a resident individual<\/p>\n\n\n\n total income after deductions under chapter VI-A is less than Rs 3.5 lakh<\/p>\n\n\n\n The amount of rebate is limited to Rs 2,500. So, if your total tax payable amount does not exceed Rs 2,500, then you will not have to pay any tax.<\/p>\n\n\n\n That the tax rebate will be utilized to the total tax before adding the health and education cess of 4% (FY 2018-19) or education cess of 3% (FY 2017-18).<\/p>\n\n\n\n examples of section 87A rebates<\/p>\n\n\n\n Examples of section 87A rebates for FY 2017-18:<\/strong><\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" A rebate is one of the income tax provisions that help taxpayers reduce their tax liability. Taxpayers earning an income under a certain limit have the benefit of paying marginally lower taxes. Let\u2019s know the rebate available under section 87A in detail: Eligibility to claim rebate u\/s 87A You can claim the benefit of rebate<\/p>\nTotal Income <\/strong><\/td> Tax payable before cess <\/strong><\/td> Rebate u\/s 87A <\/strong><\/td> Tax Payable + 4% Cess <\/strong><\/td><\/tr> 2,60,000<\/td> 5,00<\/td> 5,00<\/td> 0<\/td><\/tr> 3,60,000<\/td> 3,000<\/td> 3,000<\/td> 0<\/td><\/tr> 4,90,000<\/td> 12,000<\/td> 12,000<\/td> 0<\/td><\/tr> 12,00,000<\/td> 1,72,500<\/td> 0<\/td> 1,79,400<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Eligibility to claim rebate u\/s 87A <\/strong><\/h3>\n\n\n\n
Total Income <\/td> Tax payable before cess<\/td> Rebate u\/s 87A <\/td> Tax Payable + 4% Cess <\/td><\/tr> 2,65,000<\/td> 750<\/td> 750<\/td> 0<\/td><\/tr> 2,70,000<\/td> 1,000<\/td> 1,000<\/td> 0<\/td><\/tr> 3,00,000<\/td> 2,500<\/td> 2,500<\/td> 0<\/td><\/tr> 3,50,000<\/td> 5,000<\/td> 2,500<\/td> 2,500+100=2600<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Total Income (Rs)<\/strong><\/td> Tax payable before cess (Rs)<\/strong><\/td> Rebate u\/s 87A (Rs)<\/strong><\/td> Tax Payable + 3% Cess (Rs)<\/strong><\/td><\/tr> 2,65,000<\/td> 750<\/td> 750<\/td> 0<\/td><\/tr> 2,70,000<\/td> 1,000<\/td> 1,000<\/td> 0<\/td><\/tr> 3,00,000<\/td> 2,500<\/td> 2,500<\/td> 0<\/td><\/tr> 3,50,000<\/td> 5,000<\/td> 2,500<\/td> 2,500+75= 2,575<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n