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!

Who Can Claim the Rebate?

Not everyone can claim this rebate. Here’s who gets to enjoy this tax perk:

• Resident Individuals: Only individuals whose primary residence is in India for at least 182 days in a financial year are eligible.
• Senior Citizens (60-80 years): This age group gets the full benefit of the rebate.
• Total Income Threshold: Your total income, after claiming deductions under Chapter VI-A (like section 80C for investments), should not exceed INR 5 lakhs for the relevant financial year.
• Tax Regime: This rebate is available under both the old and new tax regimes.

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:

How to File ITR?

Types of ITR | Which ITR Should I File?

What is Income Tax? | Tax Slab | Deductions Allowed

How to Save Tax in FY 2023-24?

New Income Tax Slab for FY 2023-24