Rebate under Section 87A of Income Tax Act,1961

Rebate under Section 87A of Income Tax Act,1961

Section 87a of the Income Tax Act was introduced in Finance Act, 2013. The section was introduced to provide benefits to individuals whose total net income is below Rs.5,00,000.

Income Tax Rebate under Section 87A:

Section 87A of Income-tax Act, provide for a rebate of an amount equal to hundred per cent of such income-tax or an amount of Rs. 2000/- (Rs. 5000 from Financial Year 2016-17), whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed five Lakh rupees. 

The rebate under section 87a is available only to individual assessee and not to members of Hindu United Families, AOP/BOI, Firm and Company. Also, the aggregate amount of rebate should not exceed the amount of income tax computed before the rebate on total income of the individual with which they are chargeable for that assessment year.

                                                       

S. No.	Financial Year	Rebate
1	2016-17 & Subsequent Years	5000/-
2	2015-16	2000/-
3	2014-15	2000/-
4	2013-14	2000/-

Key Points of Section 87A of the Income Tax Act, 1961:

Listed below are the key points of Section 87A of the Income Tax Act, 1961.

· Amended section 87A is applicable from 1st April of that financial year, it is applicable to the assessment year and its subsequent assessment years

· Maximum Rebate amount Rs. 2000 (Rs. 5000 from F.Y 2016-17) 

· Only Indian residents can avail the rebate, NRIs are not eligible for the rebate

· Both male and female assesses are eligible for the rebate

· Rebate benefit is not available to super senior citizens