As we all know, the primary duty of the government is to safeguard its citizens. There are many helpful provisions in the Indian tax laws to reduce your tax liability. Section 87A of the Indian Income Tax Act is one such provision. Rebate under section 87A provides for a marginally lower payment of taxes to individuals earning an income below the specified limit. It is provided to reduce the tax burden of the lower income bracket.
Eligibility to Claim Rebate under Section 87A FY 2019-20 (AY 2020-21)
You can claim tax rebate under this provision if you meet the following conditions:
- You must be a RESIDENT INDIVIDUAL; and
- Your Total Income after Deductions (under Section 80) doesn’t exceed Rs 5 lakh.
- The rebate is limited to Rs 12,500. This means that if the total tax payable is lower than Rs 12,500, then that amount will be the rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (4%).
Following are a few examples of the 87A rebate allowed to Resident Individuals including Senior Citizens:
| Total Income | Tax payable before cess | Rebate u/s 87A | Tax Payable + 4% Cess |
| 2,70,000 | 1,000 | 1,000 | 0 |
| 3,60,000 | 3,000 | 3,000 | 0 |
| 4,90,000 | 12,000 | 12,000 | 0 |
| 12,00,000 | 1,72,500 | 0 | 1,79,400 |
Eligibility to Claim Rebate Under Section 87A FY 2018-19 (AY 2019-20)
You can claim tax rebate under this provision if you meet the following conditions:
- You must be a RESIDENT INDIVIDUAL; and
- Your Total Income after Deductions (under Section 80) doesn’t exceed Rs 3.5 lakh.
- The rebate is limited to Rs 2500. This means that if the total tax payable is lower than Rs 2500, then that amount will be the rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (4%).
Following are a few examples of the 87A rebate allowed to Resident Individuals including Senior Citizens:
| Total Income | Tax payable before cess | Rebate u/s 87A | Tax Payable + 4% Cess |
| 2,65,000 | 750 | 750 | 0 |
| 2,70,000 | 1000 | 1000 | 0 |
| 3,00,000 | 2,500 | 2,500 | 0 |
| 3,50,000 | 5,000 | 2,500 | 2,500+100=2600 |
Eligibility to Claim Rebate Under Section 87A FY 2017-18 (AY 2018-19)
You can claim the rebate if you meet the two conditions listed below:
- You are a Resident individual; and
- Your total income after Deductions (under Section 80) is no more than Rs 3.5 lakh.
- The rebate is limited to Rs 2500. This means that if the total tax payable is lower than Rs 2500, then that amount will be your rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (3%).
Following are a few examples of the rebate allowed to Resident Individuals including Senior Citizens:
| Total Income | Tax payable before cess | Rebate u/s 87A | Tax Payable + 3% Cess |
| 2,65,000 | 750 | 750 | 0 |
| 2,70,000 | 1000 | 1000 | 0 |
| 3,00,000 | 2,500 | 2,500 | 0 |
| 3,50,000 | 5,000 | 2,500 | 2,500+75= 2,575 |
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