Section 87A of Income Tax Act, 1961 provides for 100% tax rebate if the income tax liability is upto Rs. 12,500, in respect of FY 2020-21/ AY 2021-22, in the case of resident individuals having taxable income upto Rs. 5,00,000.
It may be noted that the tax rebate u/s 87A was introduced by the Finance Act 2017. Initially tax rebate of upto Rs. 2,500 was available u/s 87A for resident individual taxpayers in the lower income bracket, i.e. having total income not exceeding Rs. 3,50,000. These limits were subsequently enhanced by the Finance Act 2019, from Rs. 2,500 to Rs. 12,500 and from Rs. 3,50,000 to Rs. 5,00,000, applicable from FY 2019-20/ Ay 2020-21 and onwards.
Related Posts:
| Income Tax Slabs/ Rates: | Income Tax Cess, Surcharge & Rebate |
| Resident Individuals | Education Cess Rates |
| NRIs/ HUFs/ AOP/ BOI/ AJP | Surcharge Rates |
| Partnership Firms and LLPs | Marginal Relief from Surcharge |
| Domestic Companies | Rebate u/s 87A for Individuals |
| Foreign Companies | |
| Co-operative Societies | |
| Local Authorities |