Is Senior Citizen, above 60 years but below 80 years age, is eligible for rebate u/s 87A for FY 2019-20 ?
6 Replies
Shivam RC
(Student)
(23683 Points)
Replied 17 June 2020
Yes...
Senior Citizen can avail the benefit of Rebate under Section 87A of the Income Tax Act 1961.
Rebate U/s 87A is applicable to an Individual Assessee whose Taxable Income does not exceeds Rs. 5,00,000. Note that Rebate is not applicable to NRI.
The amount of Rebate is Lower of the following :
100% of Tax Liability.
OR
Rs. 12,500.
Senior Citizen can avail the benefit of Rebate under Section 87A of the Income Tax Act 1961.
Rebate U/s 87A is applicable to an Individual Assessee whose Taxable Income does not exceeds Rs. 5,00,000. Note that Rebate is not applicable to NRI.
The amount of Rebate is Lower of the following :
100% of Tax Liability.
OR
Rs. 12,500.
Sukumar Saha
(7 Points)
Replied 20 June 2020
Whether is it applicable for AY 2020 2021 in new regime?
Bhavin Shah
(Chartered Accountant)
(821 Points)
Replied 28 June 2020
87A benefit should be available irrespective of old regime or new regime
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 30 June 2020
For senior citizens (aged 60 years or above but less than 80 years), income up to Rs 3 lakh is exempt from tax. Income from Rs 300,001 to Rs 5 lakh is taxed at 5 per cent, from Rs 500,001 to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent.
Rebate is applicable to those under a specific income: Individuals whose income does not exceed Rs. 3,50,000, are eligible to claim the rebate under section 87A. This rebate is limited to Rs. 2,500 and is applied before adding Education Cess, which is 3%.
Umesh Chandra Prasad
(Others)
(135 Points)
Replied 30 June 2020
Can validly claim rebate u/s 87A. He is a Resident Individual and all Resident Individuals can definitely claim rebate u/s 87A if their total taxable income is upto Rs. 5 lakhs. Learn how, with the help of example below : Total Taxable Income 5,00,000 Less : Basic Exemption Limit (For Senior citizen) 3,00,000 Taxable Income 2,00,000 Tax Payable 10,000 Less : Relief under section 87A, lower of 1) Tax amount 2) Rs 12,500 10,000 Add : Health & Education Cess @ 4% 0 Final Tax payable 0
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