Rebate allowable under Section 87A of Income Tax w.e.f AY 2018-19

By | July 18, 2018
(Last Updated On: July 18, 2018)

Rebate allowable under Section 87A of Income Tax

Rebate allowable under Section 87A of Income Tax w.e.f AY 2018-19 ( Financial Year 2017-18 onwards)

CBDT CIRCULAR NO.2/2018 [F.NO.370142/15/2017-TPL]DATED 15-2-2018

42. Rationalization of rebate allowable under Section 87A.

42.1 Before amendment by the Act, the provisions of section 87A of the Income-tax Act provided for a rebate of up to Rs. 5000 from the income-tax payable to a resident individual if his total income did not exceed Rs. 5,00,000.

42.2 In view of rationalisation of tax rates for individuals in the income slab of Rs. 2,50,000 to Rs.5,00,000, section 87A of the Income-tax Act has been amended so as to reduce the maximum amount of rebate available under this section from Rs. 5000 to Rs. 2500. It is also provided that this rebate shall be available to only resident individuals whose total income does not exceed Rs. 3,50,000.

42.3 Applicability: This amendment takes effect from 1st April, 2018 and will, accordingly, apply from assessment year 2018-19 and subsequent assessment years.

Section 87A of Income Tax

Read Section 87A : Rebate of income-tax in case of certain individuals. : Rebate of income-tax in case of certain individuals.

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