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 hundred thousand rupees.

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 2015-16 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/- for Financial Year 2015-16?

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 :-

REBATE AMOUNT UNDER SECTION 87A OF INCOME TAX ACT, 1961

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1 2016-17 & Subsequent Years unless withdrawn 5000/-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

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 2016 to Increase the benefit from Rs. 2000/- to Rs. 5000/- wef Financial Year 2016-17 .

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. 2016-17/ FY 2015-16 , whose total income does not exceed 5 Lakh rupees in Financial Year 2015-16. Further rebate u/S. 87a is also  available for all the years succeeding to A.Y. 2016-17 on compliance of conditions  unless specifically withdrawn.

ID-100248761

Key Points

  • Amended Section 87A is  applicable from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.
  • 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. 2000/- (Rs. 5000/- from F.Y. 2016-17), rebate u/s. 87A is restricted to “total tax payable”.
  • Rebate u/s. 87A is allowed before levy of Education Cess, SHE 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 five hundred 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 1[two] thousand rupees, whichever is less.

1. Word “five” shall be sub. for “two” by Act No. 28 of 2016 (w.e.f. 1-4-2017).

(Compiled by Taxguru Team- Republished with Amendments)

Image courtesy of ratch0013 at FreeDigitalPhotos.net

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Tags : Budget (1951) Budget 2014 (172) CA Sandeep Kanoi (251) SECTION 87A (13)

208 responses to “Rebate under Section 87A of Income Tax Act, 1961”

  1. Balasubramanian R says:

    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?

  2. DADABHAU CHAUDHARI says:

    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

  3. DADABHAU CHAUDHARI says:

    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

  4. Bisheshwar kewat says:

    i want to know that under section 87 A .what is the rebate in financial year 2016-17

  5. rajneesh kumar says:

    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

  6. SUBHASH KUMAR SINGH says:

    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

  7. Mudasir says:

    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

    • vikas tv says:

      you are in the slab of 10% on 30000 it is 3000 is the tax less rebate is full of tax amount i.e 3000 hence tax liability is NIL

  8. Surinder singh says:

    I am tax payer, my gross income 620000 and taxable income is 475000, kindly intimate whether benefits of 87 A are applicable or not

  9. amit debnath says:

    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

  10. NANDLAL says:

    pls let me know …………. my gross annual salary is 478328 i have viA/80c of rs.150000 and what is my taxable income ? can i have tax credit of rs.2000 or 5000 for 87A ? –

  11. DEEP says:

    I have gross income 629000 and total taxable income 457165 I have GPF contribution for Rs 150000 can I claim rebate under section 87A

    • Debabrata Roy says:

      My gross income is Rs 5,25,435 including Rs 90,700 from Interest of FD. My taxable income comes to Rs
      3,75,435/ after deduction of Rs 1,50,000/-for savings U / S 80C. What amount of rebate U/S 87A is admissible to me?

  12. Jai Gopal Dhiman says:

    I am senior citizen having Rs395000/- annual pension.Besides it I have no income.My investment is Rs50000/-.As per new budget eligibility under section 87

    my total income is Rs 395000/- and investment under section 80 cc are Rs 50000/- How kkuch tax I would have to pay?
    I am senior citizen.

    a

  13. balrajan says:

    Sir, my taxable income for the f. Y. 2016-17 is 6 .2 lakh, whether I am eligible fore rebate of 5000/- under section 87A ?

  14. Rajesh Saxena says:

    Rebate of Rs 5000 is allowed under section 87A if total income is less than Rs 500000. Kindly clarify that here the income means the gross income or income after deductions

  15. ashish yadav says:

    Sir, income for the yr is 334000 and a senior citizen what will be a the taxable income pls reply

  16. kc sreedharan says:

    what is the income limit for rebate under
    87 A
    net take home salary/gross for the fin.year/taxable income after rebates

    • Iqbal Singh says:

      Sir, my taxable income for the f. Y. 2016-17 is below 5. 00
      Lakh, whether I am eligible fore rebate of 5000/- under section 87A ? I am senior citizen.

      • b.b.mandal says:

        Yes, you are eligible for rebate under 87A for rs 5000 or amount of TAX calculated,whichever is lower.

      • ATAL RAI says:

        Rebate u/s 87A is available for assessee whose total income does not exceed Rs.500,000/-. rebate shall be availabe 5000/- or 100% of income tax whichever is lower.Hence you are eligible for 87A Rebate.

  17. JASMINDER SINGH says:

    sir
    My query is if what is the permissible maximum rebate U/S 87 -A for financial year 2016-17 . And what is the INCOME CEILING for 87-A .Is it gross income of Rs 500000 or net income of Rs.500000 after deduction U/S 80-c etc. Please do reply

  18. KRISHAN AVTAR says:

    My total income for the current financial year is 3,70,000. How much tax I have to pay.

    • b.b.mandal says:

      If you have no deposit under 80c, you have to pay tax rs.12360.

      • b.b.mandal says:

        refer my earlier reply,,You are also eligible for rebate for rs 5000 under sec 87A and you have to pay net tax rs.7210.

    • ATAL RAI says:

      Your Total Tax Liability shall be Rs.7360/-(370000-250000=120000*10%+edu.cess@3% 360/-=12360-5000(rebate 5000 or 100% of 12360/ whichever is lower) total tax liability=7360/-).

  19. SURESH R GUMMAGOL says:

    My gross annual salary is 515000, i have a via/80c of rs 150000 what is my taxeble income can i have tax credit of rs 2000/-OR 5000 for 87a pls mail.me

    • RAVIKANT MANOHAR JAMDAR says:

      MY GROSS INCOME IS RS.503796/- AFTER DEDUCTION TOTAL INCOME IS RS.375200/- CAN I REBATE 5000/- UNDER SECTION 87(A)

  20. vishwanath R ingle says:

    Pl
    s my gross annual salary is 515000, i have a via/80c of rs 150000 what is my taxeble income can i have tax credit of rs 2000/- for 87a pls mail.me vriamt@gmail.com

  21. KNJADHAV says:

    My taxable income is 588640 I invest 150000 under 80c rule and37000 under 80ccd1 what is income tax I have to paid?

  22. Jagdish says:

    Can we Claim 5000/- under section 87A for the Financial year 2016-17 as my Taxable income is below five hundred thousands

  23. P Nanda says:

    A plot inherited by my mother was sold two months back and now with the amount we want to purchase a flat. Can I and my mother purchase the flat jointly? I want to keep her as second co-purchaser. Is it possible or there will be any tax implication?

    Guide us so that the flat can be in my name directly without any tax implication to my mother due to sale of plot.

    Looking forward to a speedy reply.

  24. Junaid Ahmed says:

    Hi,
    i am doing business (partnership) and i filing income tax for my company every year and my business profit is below 5lakh…. for one partner…

    while filling my individual income tax is applicable for rebate

    can be deducted under 80C plus 5000 for 87A for fy 2016-17

    • Aniket Junnare says:

      Whats the status of your partnership firm ? Is it LLP, Proprietary firm having profit/loss share decided or what ?

      Have you registered PAN Number for your business firm ?

  25. Yogesh Sharma says:

    Hello sir. actually there is difference in my 26AS form and FORM 16 on Gross income .. what should i have to rectify or crosscheck can u please explain it..

  26. kavin says:

    professional tax 2190 is deducted in TDS. is it refundable?

  27. riyaz says:

    SIR AM A HUF CAN I CLIAM REBATE U/S 87A

  28. riyaz says:

    sir can a huf cliam rebate as per IT?

  29. Ashok Mittal says:

    Is 87 A available to HUF?

  30. Pankaj Kasana says:

    Hello, I am a salaried individual. I prepared and submitted my ITR for A.Y. 2016-17 online through my account. After putting in figures for salary and TDS deducted, total tax payable was Rs. 7590. I should have paid the tax first and then submitted the return by putting paid amount as self-assessed tax. However, by mistake, I submitted the return first and then paid the amount (but before e-verifying the return). After tax-payment through Challan 280, I e-verified the tax-return through my net banking. Now, the acknowledgement I have received still shows as ‘Tax Payable’ of Rs. 7590. I want to know if this would be considered as faulty return? If so, the remedy thereof.

  31. deepa bhargava says:

    my income is 550000 with saving under 80C around 200000, how much tax I need to pay. weather 150000 can be deducted under 80C plus 5000 for 87A for fy 2016-17

  32. DURGAPRASAD AGARAWAL says:

    If after allowing the deductions the taxable salary comes Rs. 700000/ is he is entitled for tax rebate under section 87A

  33. Ashraf says:

    I I have gross income 600000 and have GPF contribution for Rs 150000 can I claim rebate under section 87A

  34. Rakesh says:

    Is the same available in case of belated return also?

  35. Pusp says:

    Hello sir,
    I want known that my taxable salary after deduction of chapter VIA is 254770.00
    Now i confuse that TDS will b deductible on 4770 @ 10% or not.
    Rebate 87A 2000/- after TDS or before…..??

    • pradeep says:

      4700-2000(87a)=2700
      education cess & sec, hig. cess-3%=81
      Total Tax Liability=2700+81=2781

    • Hemant says:

      254770-250000= 4,770
      4700*10% = 470
      Tax = Rs 470 , Since less than 2000, No tds… (87A 2000 rebate is on tax..and not on taxable income.)

    • CA Sumit says:

      254770-250000=4770
      tax on 4770 i.e. 4770 *10.3%=491
      as it is less than 2000. No TDS. Whole amount is given as rebate u/s. 87A

  36. Chennaiguy says:

    Good Article.. OK.. I understood how 87A is calculated and other stuffs..
    I have a serious question here-

    How does this refund reaches me? Does employer need to add a section in Form 16 and provide me the LESS or Should I have to mention when filing my returns ( and get it as refund)? . So far, in my tax statement, I dont see this deduction even though I am eligible for 87A and as far I remember, I have never seen this section in Form 16 issued by my employer so far..

    TIA..

    • CA. Shashank Gupta says:

      U need to claim the refund yourself while filing the return.
      And hurry up…
      31st July is approaching.

  37. John says:

    Hi,
    I work in a private sector. 25year Male. After all the detection, my total income is 260000. I know there is no tax if the total income is less that 2.5L. So am I applicable to 87C and will I get the Rebeat or I have to pay Rs.1000 as tax.

    Got a confusion after reading the following in the Key points
    If the total tax payable by is less than Rs. 2000/-, rebate is restricted to “total tax payable”.

    If
    the total tax payable by is less than Rs. 2000/-, rebate is restricted
    to “total tax payable”. – See more at:
    https://taxguru.in/income-tax/availability-rebate-87a-fy-201415-ay-201516.html#sthash.lM0iIORH.dpuf

  38. Soumya Ranjan Lenka says:

    My total income including arrears Rs.572710. Total income excluding arrears Rs. 460910. I have apportioned my arrears in respective financial year. And got relief under section 89(i) . Am i eligible for tax rebate u/s 87A of Rs. 2000/ as my total income related to this financial year is less than 5 lac.

    • Navneet Sharma says:

      No you are not eligible for rebate u/s 87a, bcoz such rebate is calculated before giving effect of relief u/s 89, i.e., ceiling limit for 87a includes income + arrears which in your case exceeds ₹5 lacs.

  39. Surendra Gond says:

    dear sir/mam
    i am a state govt. employee comes under CPS. if i include CPS contribution of Rs. 39,500/- from employer to my income, my gross income becomes Rs.5,03,833/-. after the deductions under 80 c , 80-D, 80- TTA and 80-CCD(1B) my taxable income becomes 3,25820 may i avail the deduction of Rs.2000/- u/s 87 A. and what amount of tax i have to pay for FY 2015-16.

  40. Anand says:

    Hi,
    Under which condition rebate of 2K is given…? is it for below 5 Lac income…?
    suppose I am exceeding 10% slab by not providing document while employer taxation & I submit document while filing & come under 10% slab..in this case is govt will refund amount with rebate…?

  41. sherith says:

    My total salary and other income( FD Interest) comes Rs.5,20,000/- after all deductions 80c, 80d my total income comes Rs.3,00,000/- . My taxable income is Rs.50,000/( Rs.3lakhs- Rs.2.5 lakhs). Can I deducte Rs.2,000/- under section 87 a

    • yugesh says:

      yes, total tax paid = 5000 and your total income comes < 5L. you can avail the rebate 2000.

      • John says:

        If the total tax paid = 1000, then is this Rebeat applicable.. In Key points it is mentioned as If the total tax payable by is less than Rs. 2000/-, rebate is restricted to “total tax payable”.

        Does it mean I have to pay tax of Rs.1000 ?

  42. rahul kapoor says:

    NO

    You can not get the rebate of sec.87A because that assesse whose gross income is upto 500000 P.A execpt agriculture income . only that person person can get the rebate

  43. Manjunatha N K says:

    Is section 87A applicable for financial year 2015-16 AY 2016-17 ????

  44. Jagadeesh says:

    sir,
    My gross income is 700000 and taxable income 509000, can i use debate 2000 under 87a???

  45. Janardan says:

    Is section 87 A applicable for financial year 2015-16?

  46. VEENA says:

    HOW CAN TO CALCULATE THE INCOME TAX

  47. karanamradha kishan rao says:

    My total salary is 504315/-
    total ded are 122940/-
    Remaining 381374 is my net income
    How much i have to save without tax deduction and tax payment

    • Ghanshyam says:

      Elabrat the deductions

      • sharan says:

        ncome Tax Slab AY 2015-16
        Income Slabs Tax Rates
        Less than Rs. 2,50,000 NIL
        2,50,000 to 5,00,000 10% of the amount that exceeds 2,50,000
        5,00,000 to 10,00,000 25,000 + 20% of the amount that exceeds 5,00,000
        More than 10,00,000 1,25,000 + 30% of the amount that exceeds 10,00,000

  48. Kingshuk deb barman says:

    My total income excluding agricultural income 350000/-, & agricultural income 250000/-. Can i get benifite u/s 87a..

    If my non agricultural income 510000/-, can i get same benifit..??

    • Gaurav Kumar Patidar says:

      As per Sec 87A The Total Income should be below or equal to Indian Rs. 500000 and As Your Total Income in First Case is exact Indian Rs. 500000 you will get benefit of Sec 87A but in Next Case where your income exceeds Rs. 500000 you will not get benefit of Sec 87A.

      Thanks

  49. krishnaji says:

    87a applicable for HUF

  50. Ronis says:

    my taxable income is Rs/-2262170. how much amount of rebate can be deducted from my taxable income?

  51. soumya says:

    i am also confusing about us 87a.if i will get tax rebate of rs 2000 then this amount should be refundable but in cpc letter it is not showing.

    • pradeep says:

      Example: if your tax on total income is = 50,000.
      rebate u/s 87A= 2,000
      total tax due= 48,000
      Education cess-3%= 1,440

      Tax payable= 49,440

  52. SWARUP kolkata says:

    SWARUP KOLKATA

    MY TOTAL INCOME (salary +FD Interest)=343404 , Lic 5243/- & PPF -50000/- , HOW much tax i have to pay for A.Y 2015-2016

    • Karthik says:

      I assume you are men and no other PF or VPF deduction in your salary. Based on my assumption you will be paying rupees 1870.5

  53. dinesh kumar sonker says:

    Rebt.of Rs 2000 U/S 87A ke unergat milne wali Rebt. me ITR me show nahi ker Rahi hai

  54. chiranjib mukherjee says:

    i pay 4000rs/month as HOME RENT.But i get 2697rs/month as HRA. I work as a govt.employee. How much amount i wl get as tax benefit in a financial year?

  55. Srikanth says:

    Yes, Rebate u/s. 87A is available whose income does not exceed Rs. 5,00,000.

  56. MILIND R ACHARYA says:

    good information provide

  57. bhavana joshi says:

    sec.87A deduction applicable for assessment year 2015-16 ?

  58. bhavana joshi says:

    87A deduction applicable for Assessment year 2015-16 ?

  59. harish parmar says:

    dear sir,

    i harish parmar working in private ltd company in vasai,my company provied bus serives from station to company and back but from my home to station & back ,i spend my money,can i get tax banfit u/s 10(14) 800 RS /month transport allowance and Children’s education allowance 100 Rs/month u/s 10(14) and school tuition fee u/s 80c both can i get tax banift both but my company accounted say you can’t get transport allowance & Children’s education allowance.

    can i get both allowance

    thanking your
    harish parmar

  60. sumit says:

    Dear Sir,

    Can i get deduction of 87A of Rs.2000/- after the end of 31/03/2015 for AY. 2014-15.
    Plz suggest me..

  61. Nilesh Bhatt says:

    Dear Tax Guru,
    I have confusion in my mind. Some says if you file your incometax online 1 time then from 2nd year onwords you have to file your ITR online compulsorily. You can’t file your ITR manual from second year. So please confirm whether is there any clause from Income Tax department that one can go online can’t go offline from second year.

  62. P V Dhongadi says:

    I am retired person. My pension is Rs. 519318 and Fixed deposit interest and interest o SB A/C is Rs.8971. Thus total income is 698225. I have invested in PPF Rs. 150000. Thus My taxable income is 54225. Please advise/guide whether Can I get benefit of 87A of IT Act

  63. shrinivas says:

    Dear Sir,
    I will be attaining 60 years as on 05/02/2016 (DOB 05/02/1956)
    Should I submit Form 15G or Form 15H at the Bank where I have deposits ?
    Thanks in advance

  64. s sudarshana says:

    Mr.Mayank: Your info is inadequate. How old is the the PF account? How much you have put in the current year? You may also refer to the taxation of PF withdrawl link.

  65. Mayank says:

    I have received PF amount of RS 150000 as I had quit my job and asked the employer to refund in my account.

    But they have deducted 38000 tax from PF amount,
    Upon filing the return , do I need to show this 150000 as income ? and can I claim that 38000 as return ?

  66. s sudarshana says:

    Mr.A.K.Sinha: Your tax liability is nil.

  67. AJOY KUMAR SINHA says:

    if my gross salary 260000 then how much tax I have to pay considering 87 A

  68. s sudarshana says:

    Mr.Kantharaju: The limit of Rs.1,50,000 is u/s 80-C.

  69. KANTHARAJU says:

    I need clarification of Exemption of Rs.150000/- for the FY 2014-2015 its rebate only under chapter VIII OR its include exemption Under section 10 & 17, VI-A

  70. s sudarshana says:

    Mr.Sandeep: If the taxable income is less than 5 lakhs, you get a rebate of upto Rs.2000 from the tax due. 2) Non-Resident means who is staying outside country for than 180 days of the financial year. 3) This section is nothing to do with HRA.

  71. sandeep says:

    What is exactly the Rebate section 87A.
    i have seen this comment from this, Rebate is available only to Resident individuals and not available to Non Residents. – what it mean exactly the resident and non resident. HRA submission?

  72. S Sudarshana says:

    Mr.Keerthi: Taxable income is important and not gross income. So deduction is allowed when the gross is more than 5 lakhs and taxable is less than 5 lakhs.

  73. S Sudarshana says:

    Mr.Amit: Employer cannot be blamed for the complexity in tax laws. It is their responsibility to ensure complete tax complince. Coming to the point the employer can straight away give you tne benefit of Rs.2000 tax; alternatively you can get the refund from IT dept.

  74. Mahendra Kumar Jain says:

    I have received an amount of Rs.5,60,000.00 for surrender of my HDFC life policies, Reliance life insurance & Kotak mahindra life insurance these policies are market based. Surrender was made after 5 years completion of policies. under which section exemption will claim. surrender is made during the FY 2014-15. Please reply to my above mail ID.

  75. Keerthi says:

    rebate u/s 87 A depends on the total income or the Gross total income after deductions.?

    Recently when i computed tds for a client for the A.Y 15-16 using a reliable software.. it allowed 87A rebate, though the salary is more than Rs.5,00,000/- on the logic that the gross total income after deductions is less than Rs.500,000/-

    now im completely confused..

    please clarify

  76. AAND says:

    Finance (No. 2) Bill, 2o14 is still a Bill and has not been made into Finance Act. Taxburu should choose the terminology carefully. – See more at: https://taxguru.in/income-tax/availability-rebate-87a-fy-201415-ay-201516.html#sthash.EPJ9szIy.dpuf

  77. Amit says:

    My total income is 2,70,000 . I don’t have any investment . Employer is asking me to submit investment for 20000 otherwise they will deduct the tax . I need to ask as per the Sec 87A , this 2000 Rs . , Will I get refund from Income Tax OR is it employer responsibility to give me this benefit If I gives declaration of taxable income less than 5 Lac to my employer .

    Pls suggest.

  78. G.Venkataraman says:

    My gross income is Rs3.68 Lacs. My employer has refused to give exemption of Rs.2000/- under 87-A. 87-A excemption is not there in I.T Retn forms. How to claim this amount. Please guide me. G.Venkataraman

  79. murthy says:

    sec 87a for those only whose income is upto 5,00,000 only

  80. KISHOR SADASHIV ZANKAR says:

    PENSION RECEIVED TO AN ARMED FORCED WHO IS RETIRED WILL GET EXEMPTION U/S -10(23AA)

  81. S Sudarshana says:

    Mr.Sengu: Gratuity has nothing to do with secion 87-A

  82. sengu says:

    THE PAYMENT OF GRATUITY (AMENDMENT) BILL, 2012

    STATEMENT OF OBJECTS AND REASONS
    The sub-section (2) of Section 4 of the Payment of Gratuity Act, 1972 providesfor payment of gratuity to the employees at the rate of fifteen days’ wages based on the rate of wages last drawn for every completed year of service. In today’s world of high prices and inflation, the gratuity of fifteen days wages for every completed year is too meager. At such a small rate, a person cannot get enough amount for post retirement settlement. It should therefore be atleast at the rate of thirty days’ salary for every completed year of service.
    When it will pass?

  83. s sudarshana says:

    Mr.Nihar: Depends on how long it ran. If it had run for 7 years not taxable. Provide full data (sudacgwb@yahoo.com).

  84. Nihar says:

    I have received 1000000/- as surrender value of ULIP policies. Are these taxable? Shall I have to show these as earnings?

  85. NILESH says:

    REBATE U/S.87A APPLICABELE TO A. Y. 15-16

  86. S Sudarshana says:

    Shravan Kumar: You will get the benefit automatically as the taxable income will be less than Rs.5,00,000/=.

  87. S Sudarshana says:

    Mr. Parmeshwar: To compute the actual capital gain of your proposed transaction you have to have cost of inflation index: it was 223 in 1992-93 and 1024 in 2014-15. The capital gain will be Rs.12 lakhs approx. You can invest in a special deposit in bank with a limited interest rate and lock in period, after which you can use it. Alternatively you can invest in a property and get tax exemption. Till the time of purchase you have to keep the money in capital gain account.

  88. S Sudarshana says:

    Mr.Satish: The rebate u/s87-A is automatically gets entered once the taxable income in less than 5,00,000/=. In ITR-2 online application form. Refer: Part B-TTI sl. no. 2. There is no need to claim it.

  89. Shravan Kumar says:

    D/r Sir,

    My Gross Income is 545979. Professional Tax is 1800. Under 80c 112142 & Hoam Loan interest is 110510. plz calculate the income tax. should rebate under 87A applicable in my case or not?

    Shravan

  90. satish says:

    Thanks for your reply.

    “You should know weather you have paid after rebate of Rs.2000/- u/s 87-A or without it.”

    with out it.

    1)2000 rebate under 87-A will applicable by default or we will get it once we submited Tax Returns?

  91. parmeshwar says:

    I had purchased one room kitchen in 1992 for Rs 1,22,700/-. Now I am to finalise one deal to sold this one R K for Rs 17,70, 000/-. What will be my tax liability?

  92. S Sudarshana says:

    Mr.Deepkumar & Satish: Taxable income and not gross income. Mr.Satish: You should know weather you have paid after rebate of Rs.2000/- u/s 87-A or without it. Your data is inadequate.

  93. satish says:

    Hi Sir,

    This is very nice article.
    I just require small clarification on the below point.
    “If the total tax payable by is less than Rs. 2000/-, rebate is restricted to “total tax payable”. ”

    My salary is 4 Laksh per anum.
    After exemting HRA and Medical bill.
    I paid 1500 tax to government.
    Will i get rebate of 1500 back under sec 87 A?

    Thanks
    Satish.

  94. Deep Kumar says:

    Please clarify whether rebate of Rs. 2000/- is exempted under section 87 A of the Income Tax is allowed to persons whose gross income is up to Rs. 5.00 lakh or taxable income is Rs. 5.00 lakh

  95. s sudarshana says:

    Mr.Himanshu and DNGupta: Both are eligible for exemption u/s 87-A. Calculate the tax for taxable income (gross minus deduction u/s 80-C upto 1.5 lakhs) and deduct Rs.2000 and get the tax due.

  96. Himanshu says:

    Dear sir, my total income is Rs. 560000. My savings u/s80c is Rs.150000.should I get relief u/s 87A.with regards – Himanshu

  97. DNGupta says:

    Please calculate my income tax.Gross salary is 586060 andNSC 130000.

  98. s sudarshana says:

    Chandrashekar S: This site is giving all the info. However you can visit google.co.in and put your quiery.

  99. s sudarshana says:

    MR. Sahay: You will get the rebate but the way you have calculated is not very correct. There is no standard deduction. That is a part of taxable income, and the tax rate is zero. When the taxable income is less than Rs.5,00,000 and from Rs.2,50,000, you will get this deduction upto Rs.2000 income tax. You have to compute the tax and show the deduction upo Rs.2000/-.

  100. CHANDRASHEKHARA S says:

    please send information about tax rebate 2000/ for 2014-15

  101. B N Sahay says:

    I am working in patna Municipal Corporation(Govt. of Bihar). I will get salary in Financial year 2014-15 Rs. gross amount 610426/- after deduction of HRA 54944/-, transport allowance deduction 4800/-,standard tax deduction 250000/-and deduction of u/s 80c Rs 150000/- taxable amount is 150682/-.
    I want to Know about I will get Rs. 2000/- less u/s 87A.

  102. s sudarshana says:

    MR.Bhaskar Tripathi: Rs.10,40,000/= is above Rs.4,99,999/- and you cannot claim rebate u/s 87-A.

  103. Bhaskar Tripathi says:

    In FY 2014-15 my total taxable income is 10,40,000 can i avail
    Rebate U/s. 87A ?

  104. s sudarshana says:

    Mr.Those accounts created automatically from transferring the funds from SB plus Account are essentially FDs and interest is fully taxable.

  105. JAY PRAKASH says:

    Saving plus account ke interest par TDS kata gaya hai. Sir,kya agrn aur returns form me ise dikhana jaruri hai? Main inter college me lecturer hun & meri annual income583000hai

  106. S Sudarshana says:

    Mr GejaJe, Rs.4,65,000 is less than Rs.5 lakhs. Compute the tax and claim the rebate u/s 87-A.

  107. Gejage S.B. says:

    pls let me know ………….
    my gross annual salary is 530000, i have viA/80c of rs.150000 and 80D rs 8500.
    what is my taxable income ?
    can i have tax credit of rs.2000 for 87A ?
    pls.mail me ….sankarnath das. sndasrgt@gmail.com
    – See more at: https://taxguru.in/income-tax/availability-rebate-87a-fy-201415-ay-201516.html#sthash.KwsMDL83.dpuf My taxfble is
    Amount Rs 465000

  108. S Sudarshana says:

    Mr.Roopesh Thakkar: YES. You have to calculate the tax and then show the rebate upto Rs.2000/- if your (1) taxable income is between 2.5 lakhs and less than 5.00 lakhs and (ii) tax computed is less than 25,000.

  109. Roopesh Thakkar says:

    Is this section 87/A apply for this financial year????

  110. S Sudarshana says:

    Mr Mahesh: Resident means Indian National staying in India. Individual is tax payer on behalf of himself.

  111. Mahesh B. Gawade says:

    Sir,What is meant by resident individual? Can u plz explain?

  112. s sudarshana says:

    Shrimali, Chandrashekar, et.at. : You must read the post dated: 27/12/2014 10.35 rather than expecting email/phone call. The link is also given.

  113. G.S.SHRIMALI says:

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for financial year 2014-15 . please inform me on email or my mobile no.9352586696.
    yours faithfully

    G.S.SHRIMALI
    MOB.NO.9352586696

  114. L. CHANDRA SEKHAR says:

    Sir,

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for 2015-2016 assesment year or not. Please inform me on email or my mobile No.9989334959.

    Yours faithfully
    -L. CHANDRA SEKHAR,
    9989334959
    sekharlokechandra@gmail.com

  115. sankarnath das says:

    pls let me know ………….
    my gross annual salary is 530000, i have viA/80c of rs.150000 and 80D rs 8500.
    what is my taxable income ?
    can i have tax credit of rs.2000 for 87A ?

    pls.mail me ….sankarnath das. sndasrgt@gmail.com

  116. subbarao says:

    87A deduction applicable for Assessment year 2015-16 ?
    sir,

  117. subbarao says:

    87A deduction applicable for Assessment year 2015-16 ?

  118. parashuram says:

    Sir,

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for 2015-2016 assesment year 2015-16 or not. Please inform me on email or my mobile No.9448695073
    Yours faithfully

  119. S Sudarshana says:

    yes

  120. bharat says:

    is this rebate also for 2014-15,

  121. S Sudarshana says:

    The Rule is applicable for 2014-15 F.Y which corresponds to 2015-16 Assessment Year also. – See more at: https://taxguru.in/income-tax/availability-rebate-87a-fy-201415-ay-201516.html#comments
    You may also see posting of 12/3/2014 4.23PM

  122. akchadha says:

    rebate u/s 87 a is still available or not for ay 2015-16 ? akchadhadel@yahoo.in

  123. Pratik says:

    Suppose my Gross taxable income is Rs. 250000/-, deductions u/s 80C is Rs. 20000/- and agriculture income is Rs. 350000/-. Whether I’m can claim rebate of Rs. 2000/- u/s 87A (Year AY 2014-15)

  124. subash thakur says:

    Sir,
    I want to know that the rebate under section 87/A Rs.2000/- is applicable for 2015-2016 assessment year or not. My total income is below 5lac. Please inform me on email or my mobile No.9431356021

    Yours faithfully

  125. subash thakur says:

    Sir,
    I want to know that the rebate under section 87/A Rs.2000/- is applicable for 2015-2016 assessment year or not. my income is below 5lac. Please inform me on email or my mobile No.9431356021

    Yours faithfully

  126. ajay bandgar says:

    Sir,
    I want to know that the rebate under section 87/A Rs.2000/- is applicable for 2015-2016 assessment year or not. Please inform me on email or my mobile No.9503963232

    Yours faithfully
    ajay bandgar

  127. BHUSHANA says:

    Sir,

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for 2015-2016 assesment year or not. Please inform me on email or my mobile No.9723056719.

    Yours faithfully

    bhushan agrawal

  128. BHUSHANA says:

    Sir,

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for 2015-2016 assesment year or not. Please inform me on email or my mobile No.9723056719.

    Yours faithfully

    BHUSHAN J AGRAWAL

  129. S Sudarshana says:

    Mr.Derick, Rebate in the income tax and not on income or taxable income!

  130. pradeep kumar says:

    sir,

    Please inform whether 87 a is apply in a/y 2014-2015

  131. Derick says:

    Hi all,

    I read someone’s comment saying this rebate is calculated on the total income,. well this is wrong. Rebate is calculated on the Net taxable income. I mean to say (gross income-80 deductions) and this is applicable for 15-16 aswell.

  132. PARMINDER SINGH says:

    plz advise me whether tax credit is applicable during fy 2014-15 or not.

  133. Abhishek Porwal says:

    Please inform that whether section 87A is applicable for the assessment year 2015-16 or not…

  134. sudarshana says:

    Mr Prashanth: Rebate in the income tax and not on income!

  135. Prashant says:

    At what level the rebate of Rs.2000 to be deducted ? from the total taxable income amount of from the income tax arrived at ?

  136. sudarshana says:

    The Rule is applicable for 2014-15 F.Y which corresponds to 2015-16 Assessment Year also.

  137. HDHBG says:

    MISTAKE IN F Y 2014-14

  138. Gokul k jadhav says:

    It help me for solve my quries….

  139. Ganesh H. Gawade says:

    Sir,

    I want to know that the rebate under section 87/A Rs.2000/- is applicable or not for 2015-2016 assesment year or not. Please inform me on email or my mobile No.9723056719.

    Yours faithfully

    Ganesh GAwade, ESI Scheme, Panaji Goa.

  140. sudarshana says:

    Yes

  141. Naresh Pandey says:

    Sir,

    87A deduction applicable for Assessment year 2015-16 ?

    pls advise us

  142. sudarshana says:

    Mr.Ponmariappan,
    5 lakh limit for the section under reference is TAXABLE income after deductions/exemptions.

  143. Ponmariappan says:

    Dear Ramkumar,

    Please understand the rebate U/s 87 A says the Total Income does not exceed Rs.5 lakhs not Total Tax income( without any deduction under section 80’s)

    Hope you understand!!

  144. s sudarshana says:

    Rs.2000 income tax for an income of Rs.20,000. (For Income upto 5.00 lakhs.)

  145. JASMEET says:

    ITS RS 2,000 OR 20,000 U/S 87 A …. PLEASE CLARIFY

  146. s sudarshana says:

    Mr.Ramkumar: the answer is yes. if you are doing online filing, software will ensure you get proper rebate. Taxable income is after all deductions.

  147. Ramkumar says:

    Sir,
    my total income 5.25 lac,but i paid 65,000 for LIC,so my goss income is 4,60,000. so can get the income tax rebate Rs 2000 ( under section 87A). please reply.

  148. Siju Varghese says:

    Dear All,

    Income Tax Dept. has released Income Tax Calculator for the F.Y.2014-15 in their official website. As per this, the Rebate of income-tax under section 87A is available for F.Y. 2014-15.

  149. s sudarshana says:

    Is there a way for your employer, who does the TDS, to know that you dont have any other income? He should not assume your income wont exceed 5L. It is his discretion after obtaining an undertaking from you that your other income and including that it will be less than 5.00lakhs, to allow the deduction of income tax upto Rs.2000.

  150. sanjay kumar says:

    Sir,
    if a employee having total salary rs 420000 in fy 2014-15 having saving of rs 150000 in ppf. what will be duty of employer ded the tds from salary, he will ded rs 2000 or not( releife under section 87A )

  151. s sudarshana says:

    CA Raghunathan:
    Your advise is very opt. But it is TaxGuru and not Taxburu!

  152. CA Raghunathan says:

    Finance (No. 2) Bill, 2o14 is still a Bill and has not been made into Finance Act. Taxburu should choose the terminology carefully.

  153. SHIVAM GUPTA says:

    GOOD AFTERNOON FRIENDS.IN BUDGET F.Y 2014-15 SECTION 87A DID NOT AMEMNDED BY FINANCE MINISTER. THEREFORE IF RESIDENT INDIVIDUAL WHOSE TOTAL INCOME LESS THAN 500000 THEN SUCH INDIVIDUAL WILL BE BENFIT OF 2000 IN TAXATION OF SECTION 87A IN F.Y 2014-15

  154. s sudarshana says:

    FY 2014-15, that is current fiscal.

  155. badareenath P says:

    So in our view Rebate U/s. 87A is Available to Resident Individuals , whose total income does not exceed 5 Lakh rupees in even for Financial Year 2014-14 and for Subsequent Years.

    In the above statement, FY 2013-14 OR 2014-15?

  156. Manish Soni says:

    I do agree with the above opinion and as a result of this, an individual can show his income upto INR. 2,70,000 without paying any taxes. Similarly a senior citizen can show an income of INR. 3,20,000 without paying any taxes.

  157. Atul says:

    I too believe benefit of Sec.87A is available in Asst. Yr 2015-16 and thereafter.

  158. Sanjay says:

    Genuinely it should not be but it is not clear as per announcement of budger 2014-15. But as per tax claculation software from govt. it is considered so upto 270000/- the tax will be nil. (in slab of taxable income less than or eaqual to 5 lac.

  159. s sudarshana says:

    This will prove the FM right in telling the salaried class that his increasing the limit from 2.0 lakh to 2.5 lakh will result in saving of Rs.5000/-. Else it would have been Rs.3000/= (of course in case of those whose taxable income is upto Rs.5.00 lakhs.

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