Rebate Under Section 87a for ay 2019-20 & ay 2020-21 with example

Rebate is an exemption that can be given to the individual of the middle-income group this can be given only to residents. The rebate will be calculated considering the gross amount after claiming all deductions.

Under section 87a for A.Y.2020-21

Individuals who are residing in India and whose income is below Rs. 5,00,000 are entitled to claim rebate under section 87A. Rebate under section 87A should be 12500 Rs or lesser than the total income tax liability.  For example, if the tax liability is more than Rs. 12,500,  then rebate will be available to the extent of Rs. 12,500 only and there is no rebate if the total income (i.e. taxable income) exceeds Rs. 5,00,000.

Examples :

1.Individual and Resident of India (< 60 Years )

2. Individual and Resident of India (Senior citizens (Age 60 ≥ 80 ) )

Under section 87a for A.Y.2019-20

Individuals who are residing in India and whose income is below Rs. 3,50,000 are entitled to claim rebate under section 87A. Rebate under section 87A should be 2500 Rs or lesser than the total income tax liability.  For example if the tax liability is more than Rs. 2,500,  then rebate will be available to the extent of Rs. 2,500 only and there is no rebate if the total income (i.e. taxable income) exceeds Rs. 3,50,000.

Who will get the rebate under section 87a for A.Y.2019-20

The employee who is an individual resident and who gets the salary (After less the all deductions) which does not exceed 3,50,000 in the financial year then they will get the 2500/- rebate u/s 87a income tax act. Senior citizens (Age 60 ≥ 80 ) also eligible for rebate 2500/- u/s 87a.This rebate will be added before calculation of education & Health cess @ 4% on tax

You can see the calculation of rebate under section 87a in Form-16 A.Y.2019-20.

Also read: Download form 16 in excel format for ay 2019-20

Examples :

1.Individual and Resident of India (< 60 Years )

2. Individual and Resident of India (Senior citizens (Age 60 ≥ 80 ) )