Section 87a of income tax act 1961

As per Section 87A of Income tax Act,1961 

any individual resident and ordinary resident having taxable income below Rs. 5,00,000.00 for the any assessment year, then a rebate is available of Rs 2000/- or Tax liability, whichever is lower.

Case 1: A resident Ram 89 years old having taxable income of Rs 4,70,000.00 in A.Y. 2015-16. Is the rebate is allowed?

Sol: No, Rebate is not allowed because the assesse's income is under the slabe rate so rebate's concept is not applicable.

Case 2: A non resident peter 32 years old having taxable income of Rs 4,50,000.00 in A.Y. 2015-16. Is the rebate is allowed?

Sol: No, rebate is not allowed because the assesse is non resident. This provision is applicable to only resident individual.

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