Rebate

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:

  1. You must be a RESIDENT INDIVIDUAL; and
  2. Your Total Income, less Deductions, (under Section 80) is equal to or less than Rs 5,00,000.
  3. 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 IncomeTax payable before cessRebate u/s 87ATax Payable + 4% Cess
3,00,0002,5002,5000
3,50,0005,0005,0000
5,00,00012,50012,5000
5,50,00022,500022,500+900=23,400