What’s the Rebate Amount?
The good news is that you can get a rebate of up to INR 12,500 under Section 87A. This means that if your total tax liability is less than INR 12,500, you won’t have to pay any tax at all!
Important Points to Remember:
- The rebate amount cannot be greater than your total tax liability (before cess).
- This rebate does not apply to Non-Resident Indians (NRIs).
- Senior citizens above 80 years (super senior citizens) are not eligible for this rebate.
- For claiming the rebate, you must file your income tax return on time.
Additional resources:
Types of ITR | Which ITR Should I File?
What is Income Tax? | Tax Slab | Deductions Allowed
Eligibility for Claiming Rebate u/s 87A
Do you fall under the income bracket of INR 5 lakhs or less? If yes, you might be eligible for good tax relief in the form of a rebate under Section 87A of the Income Tax Act, 1961. But before you jump for joy, let’s understand the nitty-gritty of this tax benefit and see if you qualify!