regarding rebate u/s 87A
Mahesh Chandra Mohapatra (189 Points)
10 February 2019
Please explain the rules to avail rebate u/s 87A.
Mahesh Chandra Mohapatra (189 Points)
10 February 2019
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(168298 Points)
Replied 10 February 2019
manoj
(student)
(5205 Points)
Replied 10 February 2019
Rebate under section 87A of Income Tax Act is obtainable in the form of a deduction from the tax liability. It was first introduced in the Finance Bill of the year 2013 with a view to provide benefits to the people who are earning up to Rs 5,00,000. The purpose of this rebate is to lessen the tax burden of individuals in the lower income bracket. Earlier the rebate under Section 87A was Rs 5,000, provided the individual was an Indian resident, and his/her total annual income did not exceed Rs 5,00,000. However, with the introduction of the Finance Bill 2017 , the amount was changed.
As per the the Finance Bill 2017, an Indian resident earning more than Rs 3,50,000/per annum, is entitled to claim rebate under section 87A. Rebate under section 87A is allowed up to a maximum of Rs 2,500. It means the amount of rebate will be lower of either Rs 2,500 or 100% of the income-tax liability.
trideep
(ca)
(218 Points)
Replied 20 March 2019
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