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?
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|1||2018-19 & Subsequent Years unless withdrawn||2,500/-|
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u/s. 87A is also available for all the years succeeding to A.Y. 2019-20 on compliance of conditions unless specifically withdrawn.
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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