23 October 2017
Section 87A: Section 87A rebate provides for income tax rebate to individuals earning income below the specified limit. It is being provided to reduce the tax burden of lower income bracket.
The rebate can be claimed if you satisfy both these conditions:
You are a resident individual.Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 500,000 (For FY 2017-18 it is 350000)
If both the above conditions are satisfied, rebate of upto 5000 (For FY 2017-18 it is 2500) will be available under Section 87A. This rebate is applied on total tax before adding Education Cess (3%).
Please note that the rebate is also available to Senior Citizens who are 60 years old but less than 80 years old.
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