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Rebate of Income Tax to Individuals – Section 87A

Rebate under section  87A is allowed from the amount of income tax.  This section is inserted by finance act 2013 and is applicable from assessment year 2014-15.

Eligible Person Individual resident in India whose total income does not exceed Rs. 5,00,000. Limit is reduced to Rs. 3,50,000 from Financial year 2017-18.

Eligible Amount –  Rebate is allowed from tax payable before levy of Education cess, secondary and higher education cess & Surcharge. The amount of rebate is equal to tax payable subject to the following maximum limits

Financial YearMaximum LimitTotal Income Limit
2013-14 to 2015-16Rs. 2,000Rs. 5,00,000
2016-17Rs. 5,000Rs. 5,00,000
2017-18Rs. 2,500Rs. 3,50,000

This cannot be said that the exemption limit is increased by Rs. 20,000/Rs. 50,000 because this benefit is not available to assessees whose total income exceeds Rs. 5,00,000.
Although rebate is allowed to senior citizens. Super senior citizens does not get any benefit because their exemption limit is already Rs. 5,00,000.

Relief under section 87A will be calculated automatically if you are filing income tax return through excel or java utility.


About Rohit Pithisaria

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.

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