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| 1 | 2018-19 & Subsequent Years unless withdrawn | 2,500/- |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u/s. 87A is also available for all the years succeeding to A.Y. 2019-20 on compliance of conditions unless specifically withdrawn.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)
Image courtesy of ratch0013 at FreeDigitalPhotos.net
Author Bio
Mr Mahesh: Resident means Indian National staying in India. Individual is tax payer on behalf of himself.
Sir,What is meant by resident individual? Can u plz explain?
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.
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
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
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
87A deduction applicable for Assessment year 2015-16 ?
sir,
87A deduction applicable for Assessment year 2015-16 ?
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
yes
is this rebate also for 2014-15,
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
rebate u/s 87 a is still available or not for ay 2015-16 ? akchadhadel@yahoo.in
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)
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
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
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
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
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
Mr.Derick, Rebate in the income tax and not on income or taxable income!
sir,
Please inform whether 87 a is apply in a/y 2014-2015
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.
plz advise me whether tax credit is applicable during fy 2014-15 or not.
Please inform that whether section 87A is applicable for the assessment year 2015-16 or not…
Mr Prashanth: Rebate in the income tax and not on income!
At what level the rebate of Rs.2000 to be deducted ? from the total taxable income amount of from the income tax arrived at ?
The Rule is applicable for 2014-15 F.Y which corresponds to 2015-16 Assessment Year also.
MISTAKE IN F Y 2014-14
It help me for solve my quries….
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.
Yes
Sir,
87A deduction applicable for Assessment year 2015-16 ?
pls advise us
Mr.Ponmariappan,
5 lakh limit for the section under reference is TAXABLE income after deductions/exemptions.
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!!
Rs.2000 income tax for an income of Rs.20,000. (For Income upto 5.00 lakhs.)
ITS RS 2,000 OR 20,000 U/S 87 A …. PLEASE CLARIFY
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.
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.
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.
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.
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 )
CA Raghunathan:
Your advise is very opt. But it is TaxGuru and not Taxburu!
Finance (No. 2) Bill, 2o14 is still a Bill and has not been made into Finance Act. Taxburu should choose the terminology carefully.
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
FY 2014-15, that is current fiscal.
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?
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.
I too believe benefit of Sec.87A is available in Asst. Yr 2015-16 and thereafter.
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.
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.