Rebate

Rebate Under Section 87A FY 2018-2019 (AY 2019-2020)

You are eligible to claim tax rebate under this provision if you meet the following conditions:

  1. You must be a RESIDENT INDIVIDUAL; and
  2. Your Total Income, less Deductions, (under Section 80) is equal to or less than Rs 3,50,000.
  3. The rebate is limited to Rs 2,500. This means that if the total tax payable is lower than Rs 2,500, then that amount will be the rebate under section 87A. [This rebate is applied to the total tax before adding the Education Cess (4%)]

Examples for Rebate under section 87A allowed to Resident Individuals including Senior Citizens:

Total Income Tax payable before cess Rebate u/s 87A Tax Payable + 4% Cess
2,55,000 250 250 0
2,90,000 2,000 2,000 0
3,00,000 2,500 2,500 0
3,50,000 5,000 2,500 2,500+100=2,600
3,64,000 5,700 0 5,750+228=5,928

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