SuperCA Blogs

Introduction Income tax is a significant source of revenue for the government, and therefore, the government provides various tax benefits and rebates to taxpayers to promote compliance and ease the tax burden on certain categories of taxpayers. One such benefit is the 87A rebate, which is a rebate available to individual taxpayers whose taxable income is below a specified threshold. In this article, we will discuss who is not eligible for the 87A rebate. What is 87A Rebate? Tax Rebate Under Section 87A is provided to individual taxpayers with an annual income of up to Rs. 5,00,000. The maximum rebate available under Section 87A of the Income Tax Act is Rs. 12,500. It means that if your total tax liability is less than or equal to Rs. 12,500, you will be eligible for the full rebate of Rs. 12,500. Who is not eligible for 87A Rebate? While the 87A rebate is available to most individual taxpayers with an annual income of up to Rs. 5,00,000, there are certain categories of taxpayers who ...

Introduction to Tax Rebate under Section 87A Income tax is a compulsory tax levied by the government on the income earned by individuals, businesses, and other entities. However, the government provides certain tax benefits and rebates to taxpayers to ease the burden of taxes and encourage them to invest more in tax-saving instruments. One such tax benefit is the tax rebate under Section 87A of the Income Tax Act 1961. In this article, we will discuss the tax rebate under Section 87A in detail, including its eligibility criteria, how to claim the rebate, and recent changes in the provisions. Eligibility Criteria for Tax Rebate under Section 87A The tax rebate under Section 87A is available to resident individuals, including senior citizens (between 60 and 80 years of age) and resident Hindu Undivided Family (HUF) whose total taxable income does not exceed Rs. 5 lakhs in a financial year. Super senior citizens (above 80 years of age) are not eligible to avail of the rebate under Secti...