A new section 87A was introduced by Finance bill 2013 for Income Tax Deduction of Rs. 2000/- for Assessment Year 2014-15. This section was further amended by Finance Act 2017. As per the amended section 87A, this rebate can be availed by resident individual, whose net income does not exceeds Rs 3.5 Lacs. The amount of deduction is 100% tax or Rs 2500, whichever is less .
The amended section 87A seeks to provide that an assessee, being an individual resident in India, whose total income does not exceed 3.5 lacs, shall be entitled to a deduction, from the amount of income-tax 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 Rs 2500, whichever is less.
Tax rebate words from wood on black surface.
Consequential amendments have been proposed in section 87, so as to provide reference to proposed new section 87A.
Points of consideration….
- These amendments will take effect from A.y 2018-19 1and will, accordingly, apply in relation to the assessment year 2019-20 and subsequent assessment years unless withdrawn
- Rebate is available only to individuals
- No rebate to Non Resident.
- If the total tax payable is less than Rs. 2500/-, rebate is restricted to “total tax payable”.
- Rebate benefit is not applicable to a 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 from Rs. 2,50,000/- to Rs. 2,75,000/-.
Section 87A Reads as:
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.
Shubhi Goel
Also Read :- S. 87A Income Tax Credit/Rebate of Rs. 2,000 – FAQ
(Republished With Amendments)
Dear Sir, my gross salary is rs.6,16,010/- and my savings is rs.1,50,000/- u/s 80 c and my home loan interest is of rs. 1,40,000/-.
Should i get relief u/s 87 A.
with regards
I want to know that rebate under 87A is continue for assessment year 2015-16 please guide good information provided by you.
my income is 585444under section 87 A is applied for me pl clarify
My annual income is 560000 can I get the rebate Rs 2000 in section 87A
Dear sir, my gross salary is Rs. 560000 and my savings is Rs. 1500000.u/s 80c.should I get relief u/s87A. With regards himanshu email I’d – [email protected]
please give me the details about online registration for op
If an individual return is submitted after due date, whether he will be allowed exemption under section 87a.
Pl, let me know whether 2000 rebate under sec 87A is applicable for AY 2015-2016 also
Nice Article. Anyone can also visit my article dated 02-03-2013!!!
https://taxguru.in/income-tax/87a-income-tax-creditrebate-rs-2000-faq.html
My total taxable income is nil according to form 16.In that i have got rebate of under section 87A is 700. Now my saving account interest is 80000 so will I get remaining 1300 from this interest?
I think Sunil is saying correct. Section 87A will be applied from 01.04.2013.
Sir,
As an employer whether we can give the rebate at source or the assessee has to file his return to claim the rebate
Regards,
Mahesh Pai
A FLAT IS BOOKED IN 2012. THE VALUE IS 70 LAKHS. 50 LAKHS IS PAID BEFORE 31/5/2013 AND BALANCE AMOUNT IN DEEMBER 2013. WHAT IS THE IMPLICATION AS REGARDS DEDUCTION OF TAX IN TERMS OF LATEST TAX PROVISIONS
Is this amendment under section 87A is applied from 01-04-2013 or 01-04-2014? I think it is from 01-04-2013. Please check it.