Section 87A Rebate for AY 2017-18
87A Rebate for AY 2017-18 : Rebate of Rs. 5,000 for resident individuals having total income up to Rs. 5 lakh [Section 87A]
Purpose of 87A Rebate for AY 2017-18 (Financial Year 2016-17)
With a view to providing tax relief to the individual taxpayers who are in lower income bracket, a rebate is provided for under section 87A of Income Tax Act 1961 of India
Conditions for 87A Rebate for AY 2017-18
This rebate will be available if the following two conditions are satisfied—
♦ Taxpayer is a resident individual (he may be ordinarily resident or not ordinarily resident).
♦ His total income or net income or taxable income (i.e., gross total income minus deduction under sections 80C to 80U) is Rs. 5 lakh or less.
Amount of 87A Rebate for AY 2017-18
If the above two conditions are satisfied, the resident individual can claim rebate under section 87A.
The amount of rebate is 100 per cent of income-tax payable on total income or Rs. 5,000 with effect from assessment year 2017-18, whichever is less. This rebate will be available from income-tax (before adding surcharge and education cess).
Examples on 87A Rebate
Tax Rebate under section 87A of Income Tax Act ( With illustrations)
Section 87A Rebate for AY 2018-19
Income tax rebate under Section 87A w.e.f AY 2018-19