In the year 2013-14 the government of India introduced rebate u/s 87A. This rebate provides benefits from your taxes payable. This benefit can be claimed when your taxable income does not exceed prescribed limits for the relevant financial year. For the FY 2019-20 if you are having taxable income up to? 5, 00,000 then you are not required to pay any taxes by availing the benefit of rebate u/s 87A.
Rebate u/s 87A for FY 2020-21 (AY 2021-22)
The amount of rebate u/s 87A for FY 2020-21 (AY 2021-22) has been kept unchanged under both the old and new income tax regimes. A resident individual having taxable income up to Rs 5, 00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).
How much is the rebate allowed u/s 87A?
If an individual’s total taxable income is up to Rs. 5 Lakh then he will get the tax benefit of
- Rs. 12,500 or
- The amount of tax payable
- (whichever is lower)