What is Form 87A?
Section 87A provides tax rebate to the individual taxpayers if their total income is less than Rs 5 Lakhs after claiming deductions. Hence , firstly taxable income after deductions is to be determined to check the eligibility of the rebate.
Who is eligible for 87A?
Besides, the senior citizens (those who are between 60 and 80 years of age) can claim the rebate under section 87A. 4. However, the Super senior citizens (those above 80 years of age) are not eligible to avail of the 87A rebate.
How do I claim my 87A rebate?
One can claim tax rebate under Section 87a of the Income Tax Act if he/she meets with the following conditions: One must be a resident individual. The total income of an individual minus the Deductions (under Section 80) must be equal to or less than Rs. 5 Lakhs.
What is the rebate u/s 87A for AY 2021 22?
Rs 12,500
The amount of rebate u/s 87A for FY 2020-21 (AY 2021-22) has been kept unchanged under both old and new income tax regime. A resident individual having taxable income upto 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 do I get my tax refund rebate?
If you are a resident Indian with a gross taxable income of less than Rs. 5 lakh, you stand to qualify for a rebate through Section 87A. Similarly, in case of a mismatch in income tax payment and tax liability, you can obtain an income tax rebate or refund by filing your Income Tax Returns and verifying them.
Is rebate US 87A available under new tax regime?
Yes. The rebate benefits u/s 87A are the same for all individuals and ages who are Indian residents under both the new and old tax regimes. The interim budget of 2019-20 announced a full rebate of tax under section 87A for individuals with taxable income less than Rs 5 lakh of up to Rs 12,500 u/s 87A.
What tax will I pay on 5 lakhs?
Tax Rate for Individual Taxpayers for FY 2020-21 (AY 2021-22)
| Tax Slab | Old Rates | Tax / Old Rates |
|---|---|---|
| Income up to 2.5 Lakh | 0% | |
| Income from 2.5 Lakh – 5 Lakh | 5% | 12,500 |
| Income from 5 Lakh – 7.5 Lakh | 20% | 34,000 |
| Income from 7.5 Lakh – 10 Lakh | 20% |
Is 87A applicable for senior citizens?
Rebate is applicable to those under a specific income: Individuals whose income does not exceed Rs. 3,50,000, are eligible to claim the rebate under section 87A. Rebate benefit is not available to citizens above 60 years: Senior citizens who are above the age of 60 are not eligible to file for a tax rebate.
Is 87A rebate available in new tax regime?
Is Section 87A available in new tax regime?
When was Section 87A introduced?
2013
Section 87a of the Income Tax Act was introduced in Finance Act, 2013. The section was introduced to provide benefits to individuals whose total net income is below Rs. 5,00,000.
Will I get tax rebate automatically?
Yes, HMRC does refund overpaid tax, sometimes automatically and sometimes through the refund application process. It’s important to keep on top of your tax position because there are time limits on when you may make a claim for overpaid tax and apply for your tax rebate.
When does section 87a of the Income Tax Act apply?
Mentioned below are the points to remember for Section 87a: Section 87a is added to the Income Tax Act, 1961 for the betterment and is applicable from the April 01 st of the financial year. This act is applied to a tax assessment year and its subsequent tax assessment years.
Which is the maximum amount you can claim under section 87A?
If your total income does not exceed Rs.5 lakh, then you can claim tax rebate under Section 87A. The maximum amount that you claim as a tax deduction under Section 87A of the Income Tax Act, 1961 is Rs.12,500. Can NRIs avail the tax rebate?
What are the conditions for claiming tax rebate under section 87A?
One can claim tax rebate under Section 87a of the Income Tax Act if he/she meets with the following conditions: One must be a resident individual. The total income of an individual minus the Deductions (under Section 80) must be equal to or less than Rs.5 Lakhs. The income tax rebate can be up to Rs.12, 500.
Is there a tax surcharge under section 87A?
A person claiming rebate u/s 87A will never attract a levy of surcharge . Rebate under this section is allowed to a resident individual having total taxable income maximum upto Rs. 5 lakhs. Whereas, surcharge @ 10% is triggered if the total income of an individual exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore.