Rebate U/s. 87A of the Income Tax Act, 1961

• December 30, 2019
• CA Chandan Agarwal's Office

As we all are aware that, there is an amendment under section 87A i.e Rebate of Income Tax which is meant for Assessee being an individual resident in India could help small tax payers to cut out on Taxes marginally. This article covers the rebate applicability, its limit for AY 2019-20 and AY 2020-21 alongwith examples.

1. Extract of Section 87A of Income Tax Act, 1961

“An assessee being an individual resident in India, whose total Income does not exceed Rupees Three Lakhs Fifty Thousand (Refer Note 1), shall be entitled to a deduction, from the amount of income tax (as computed before allowing 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 Rs. Two thousand five hundred (Refer Note 2), whichever is less.”

Read more on: https://taxguru.in/income-tax/rebate-87a-income-tax-act-1961.html