Rebate u/sec. 87A

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This query is : Resolved

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This discussion clarifies the eligibility for the Section 87A tax rebate, particularly for senior citizens and Hindu Undivided Families (HUFs). While initial confusion arose from news articles, it's confirmed that the rebate is generally available to resident individuals. However, specific categories like HUFs, NRIs, companies, and super senior citizens may not be eligible, especially under the old tax regime. It's advised to await official notifications from the Income Tax Department for definitive guidance.

SHAHNH

SHAHNH (Querist)

08 February 2025 Hello!

My father is a very senior citizen earning between 10 to 12 lakhs from Dividend and Interest. Learnt that new rebate proposed is not available to them. Can anyone explain the logic for keeping only them out from the category of resident individuals as it's the only income from their hard earned money accumulated over the years.

Thanks in advance

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

08 February 2025 As per the budget proposal, there is no such declaration of non-eligibility of the rebate to super senior citizen. Wait for any such notification by ITD.

SHAHNH

SHAHNH (Querist)

09 February 2025 Thanks... came across an article

No tax for up to Rs 12.75 lakh income for salaried under new tax regime as Section 87A tax rebate hiked in Budget 2025 - The Economic Times - https://m.economictimes.com/wealth/tax/section-87a-tax-rebate-changes-in-union-budget-2025/articleshow/117735302.cms?utm_source=whatsapp_pwa&utm_medium=social&utm_campaign=socialsharebuttons

👆🏻HUFs, NRIs, companies, and super senior citizens cannot claim rebate under section 87A.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

09 February 2025 Explanation is not given there: the rebate is not available for Super senior citizens under old regime. !!!
Such articles are required to be read with caution.
Moreover, wait for Direct code, which will be applicable from next FY.

SHAHNH

SHAHNH (Querist)

10 February 2025 Thanks a lot Sir!
Is rebate available for HUF under new regime.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

10 February 2025 No, rebate u/s. 87A is only available to resident individuals.

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