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| 1 | 2018-19 & Subsequent Years unless withdrawn | 2,500/- |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u/s. 87A is also available for all the years succeeding to A.Y. 2019-20 on compliance of conditions unless specifically withdrawn.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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Author Bio
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..
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.
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
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
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.
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 ?
Mr.A.K.Sinha: Your tax liability is nil.
if my gross salary 260000 then how much tax I have to pay considering 87 A
Mr.Kantharaju: The limit of Rs.1,50,000 is u/s 80-C.
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
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.
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?
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.
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.
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.
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
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
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.
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
sec 87a for those only whose income is upto 5,00,000 only
PENSION RECEIVED TO AN ARMED FORCED WHO IS RETIRED WILL GET EXEMPTION U/S -10(23AA)
Mr.Sengu: Gratuity has nothing to do with secion 87-A
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?
Mr.Nihar: Depends on how long it ran. If it had run for 7 years not taxable. Provide full data (sudacgwb@yahoo.com).
I have received 1000000/- as surrender value of ULIP policies. Are these taxable? Shall I have to show these as earnings?
REBATE U/S.87A APPLICABELE TO A. Y. 15-16
Shravan Kumar: You will get the benefit automatically as the taxable income will be less than Rs.5,00,000/=.
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.
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.
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
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?
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?
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.
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.
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
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.
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
Please calculate my income tax.Gross salary is 586060 andNSC 130000.
Chandrashekar S: This site is giving all the info. However you can visit google.co.in and put your quiery.
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/-.
please send information about tax rebate 2000/ for 2014-15
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.
MR.Bhaskar Tripathi: Rs.10,40,000/= is above Rs.4,99,999/- and you cannot claim rebate u/s 87-A.
In FY 2014-15 my total taxable income is 10,40,000 can i avail
Rebate U/s. 87A ?
Mr.Those accounts created automatically from transferring the funds from SB plus Account are essentially FDs and interest is fully taxable.
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
Mr GejaJe, Rs.4,65,000 is less than Rs.5 lakhs. Compute the tax and claim the rebate u/s 87-A.
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
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.
Is this section 87/A apply for this financial year????