Learn who can avail tax rebate u/s 87a of Income Tax Act. In this guide by H&R Block we discuss about the eligibility criteria for claiming rebate. The government gives income tax rebate to the people who have low income. This rebate is given under section 87A of the income tax act. A new section 87A by Finance bill has been introduced for Income Tax Deduction of Rs. /- for Assessment Year This rebate.
|Published:||17 November 2017|
|PDF File Size:||26.19 Mb|
|ePub File Size:||46.58 Mb|
The 87a income tax rebate of income tax rebate available under section 87A of the Income Tax Act, will be lower of the following: On one hand, the income tax rebate gives relief to low income group. On the other hand Income tax surcharge levies extra tax on high earners.
Rebate is applicable to those under a specific income: Individuals whose income does not exceed Rs. Nevertheless, this is wrong understanding.
Take a simple example of a senior citizen i. Please, this is very big misinterpretation of section 87A to relate it with filing return of income.
Rebate under section 87A of Income Tax Act is obtainable in the form of a deduction from the tax liability. However, the surcharge shall be subject to marginal relief where income one 87a income tax rebate rupees, the total amount payable as income-tax and surcharge shall not exceed total amount 87a income tax rebate as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
The rebate under Section 87A is only available for individuals who are residents of India.