Tax Rebate Under Section 87A
The act includes the levy, administration, collection as well as recovery of the tax. The Section 87A was inserted into the income tax for the relief to the people who pay tax. As the rebate under the Section 87a is also possible to make the individual pay lower tax amount below the specified limit set by the government.
What is the total income under section 87a?
As per the income tax department. An individual who is a resident of India. And the total income of the candidate is not above Rs. 5 Lakh can make access to claim the rebate under the section 87A. Candidate can fill the form for the rebate from the tax liability. As the Rebate under Section 87 A 100% for the tax liability.
Eligibility Criteria to get Benefits of Tax Rebate
Who is eligible for 87A rebate?
If you want to know it then check the points below to know about the eligibility criteria under the rebate of income tax under 87A.
- According to the act, only the individual is eligible to avail the rebate. The rebate cannot be claimed by the firms, companies or the Hindu Undivided Family.
- The benefit of the rebate is applicable for the candidates who are above the age of 60 years and below 80 years means the senior citizens.
- As per the rebate under section 87 A the super senior citizen means the citizen whose age is above 80 years are not eligible for the rebate.
Can NRIs claim rebate under section 87A?
- Candidate should be the resident of India, NRI cannot get a benefit of the rebate under the given section.
- Male and female candidate can assess the rebate under section 87 A.
Tax Rebate Earlier
- Individual tax exemption earlier was up to 2.5 Lac.
- Senior citizen up to 3 lac.
- Super senior citizen up to 5 lac.
Points of Section 87A of the Income Tax Act, 1961
As follows are some points which will help to clarify the topic and the issues related to the Tax rebate under the section 87A.
- Under the section, the taxpayer can claim either 100% of the income tax liability or Rs.2500 whichever is lower from the amount of the tax deducted.
- 4% educational cess is applicable for the total tax prior.
Tax Rebate Now
- If a candidate who is below 60 years and has a taxable income of Rs. 3 lac then he or she will get the rebate of Rs. 2500/-.
- Same procedure is for the canddate earning upto 5 lac.
- There is no tax applicable for the earning gross income of Rs 6.5 lakh per year.
- Relief of tax deduction in case of investment.
- The contender whose income is above 5 Lac has to give the tax. No tax rebate benefits.
- Standard deduction increased on salary income from 40 k to 50k.
- Other tax slabs remain unchanged such as 20 percent tax on income between Rs 5 lakh and Rs 10 lakh, 30 percent tax on income above Rs 10 lakh.
