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. 5000/- (Rs. 25,00 from A.y 2018-19), whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed five hundred thousand rupees (3.5 lakhs wef A.y 2018-19) :-
A question which is coming in the mind of Taxpayers nowadays is do Rebate of income-tax under section 87A as available from FY 2013-14, also available for FY 2018-19, and subsequent years. One more question which comes to mind is amount of Rebate Available under section 87A, i.e is it Rs. 2000/- or Rs. 5000/- or Rs. 2,500/- for Financial Year 2018-19?
Relevant Articles-
We have made a Chart of Amount of Rebate U/s. 87A Available to individual resident in India whose total income does not exceed five hundred thousand rupees (3.5 lakhs wef A.y 2018-19) :-
REBATE AMOUNT UNDER SECTION 87A OF INCOME TAX ACT, 1961
| S. No. | Financial Year | Rebate Available |
| 1 | 2018-19 & Subsequent Years unless withdrawn | 2,500/- |
| 2 | 2017-18 | 2,500/- |
| 3 | 2016-17 | 5,000/- |
| 4 | 2015-16 | 2,000/- |
| 5 | 2014-15 | 2,000/- |
| 6 | 2013-14 | 2,000/- |
Finance Act 2013 has introduced the rebate U/s. 87A and in this section it has not restricted the exemption to any particular Financial or Assessment year and section been further amended by Finance Act 2017 to provide maximum deduction of Rs 2500 if the net income of resident individual does not exceeds Rs 3.5 Lacs.
In both the Act mentioned above Section 87A has not restricted the exemption to any particular Financial or Assessment year. So in our our view Rebate U/s. 87A is Available to Resident Individuals for A.Y. 2018-19/ A.Y 2019-20 , whose total income does not exceed 3.5 Lakh rupees in Financial Year 2017-18 & 2018-19 Further rebate u/s. 87A is also available for all the years succeeding to A.Y. 2019-20 on compliance of conditions unless specifically withdrawn.
Key Points
- Rebate under section 87A is available only to Resident individuals and not available to Non Residents.
- Rebate under section 87A available to both Male and Female assesses
- If the total tax payable by is less than Rs. 5000/- (Rs. 2,500/- from F.Y. 2017-18), rebate u/s. 87A is restricted to “total tax payable”.
- Rebate u/s. 87A is allowed before levy of Health and Education Cess & Surcharge.
- Rebate benefit is available to all category of Individuals but not to super senior citizen, since he is already fully exempted up to Rs. 5 lakh.
- Above amendment does not mean that basic Exemption Limit has been raised.
Extract of Section 87A is as follows :-
Rebate u/s. 87A of income-tax in case of certain individuals.
Rebate of income-tax in case of certain individuals.
87A. An assessee, being an individual resident in India, whose total income does not exceed [three hundred fifty thousand] rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of [two thousand and five hundred] rupees, whichever is less.
(Compiled by Taxguru Team- Republished with Amendments)
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Thanks brother. I seen it at income tax department site and asked to many welknown tax consultant sites but no one ready to understand it.
thanks once again for it fy 2018-19 ay2019-2020 clarification about 87A.
HI IF INCOME IS LESS THAN 350000/- AND RETURN OF INCOME IS FILED IN OCT FOR P.Y 17-18 WHETHER REBATE U/S 87 A CAN BE CLAIMED.
Hi,
Can I claim tax rebate under section 87a for AY 2017-18??
While filling ITR for last year i.e. 2017-18, tax rebate under section 87a shown as zero.
Section 87 a rebate on taxable income of RS.350000/- or on gross income ?
In case of PAN Not Available whether Rebate is applicable. since tds is deducted at 20%.
I am recieving arrears due to CPC 7 revised pension. My bank does TDS on the full amount which is spread over 3 conseqitive financial years 2015 – 16, 2016 – 17 & 2017 -18. How do I get relief for these years as otherwise including the total amount goes to 30% tax bracket which is loss to me. How do I get tax relief?
hi my gross income for f.y. 2017-18 is below Rs. 500000/- after deductions us 80c, whether i m eligible to get rebate of Rs. 5000/- us 87a
hi, my gross income after deductions u.s. 80c is less than Rs. 500000/- whether i m eligible to get rebate of Rs. 5000/- u.s. 87a
i want to know that under section 87 A .what is the rebate in financial year 2016-17
total taxable income not above 500000 so u get rebate thats mean if u have gross income 649000 rebate 80c 150000 so u have eligible for 5000 87a rebate enjoy
Sir my income gross income is 518022 and after saving under Sec 80c and 80d education loan my taxable income is 292000 will I get rebate u/s 87a
Sir my income is 350000 gross.out of which 250000 should not be taxed as per guidelines of govt..for remaining 100000 I have the lic policy+sli policy+ NPS deduction total amount of all tbese policies is 70000. Now 100000-70000= 30000.for this 30000 how much tax I have to pay.. 87a
I am tax payer, my gross income 620000 and taxable income is 475000, kindly intimate whether benefits of 87 A are applicable or not
I I have gross income 678229 and have GPF contribution for Rs 150000 can I claim rebate under section 87A – See more at: https://taxguru.in/income-tax/availability-rebate-87a-fy-201415-ay-201516.html#sthash.NE1hsGlB.dpuf