S. 87A Tax Rebate to Certain Individuals having Total Income upto Rs. 5 Lac
A resident individual having income upto Rs. 5 Lac shall be entitled for a rebate from income-tax payable for relevant assessment year, of an amount equal to 100% of such tax amount or Rs. 5,000 whichever is less. It may be noted that the amount of Rebate has been increased to Rs. 5,000 for AY 2017-18 onwards, from Rs.2,000 applicable for AY 2016-17.
S.87A of Income Tax provides that an assessee, being an individual, resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the 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 five* thousand rupees (AY 2017-18), whichever is less.
* two thousand rupees for AY 2016-17