Rebate Under Section 87A FY 2019-2020 (AY 2020-2021)
You are eligible to claim tax rebate under this provision if you meet the following conditions:
- You must be a RESIDENT INDIVIDUAL; and
- Your Total Income, less Deductions, (under Section 80) is equal to or less than Rs 5,00,000.
- The rebate is limited to Rs 12,500. This means the total tax payable or Rs 12,500, whichever is lower, 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 |
| 3,00,000 | 2,500 | 2,500 | 0 |
| 3,50,000 | 5,000 | 5,000 | 0 |
| 5,00,000 | 12,500 | 12,500 | 0 |
| 5,50,000 | 22,500 | 0 | 22,500+900=23,400 |