Individuals who are residing in India and whose income is below Rs. 3,50,000 are entitled to claim rebate under section 87A. Rebate under section 87A should be 2500 Rs or lesser than the total income tax liability. For example, if the tax liability is more than Rs. 2,500, then rebate will be available to the extent of Rs. 2,500 only and there is no rebate if the total income (i.e. taxable income) exceeds Rs. 3,50,000.
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Who will get the rebate under section 87a for A.Y.2019-20
The employee who is an individual resident and who gets the salary (After less the all deductions) which does not exceed 3,50,000 in the financial year then they will get the 2500/- rebate u/s 87a income tax act. Senior citizens (Age 60 ≥ 80 ) also eligible for rebate 2500/- u/s 87a.This rebate will be added before calculation of education & Health cess @ 4% on tax
Examples :
1.Individual and Resident of India (< 60 Years )
Total Taxable Income
|
Tax
|
Rebate u/s 87a
|
Tax Payable
|
Cess @ 4%
|
Net Tax Payable
|
300000
|
2500
|
2500
|
0
|
0
|
0
|
350000
|
5000
|
2500
|
2500
|
100
|
2600
|
400000
|
7500
|
0
|
7500
|
300
|
7800
|
500000
|
12500
|
0
|
12500
|
500
|
13000
|
2. Individual and Resident of India (Senior citizens (Age 60 ≥ 80 ) )
Total Taxable Income
|
Tax
|
Rebate u/s 87a
|
Tax Payable
|
Cess @ 4%
|
Net Tax Payable
|
300000
|
0
|
0
|
0
|
0
|
0
|
350000
|
2500
|
2500
|
0
|
0
|
0
|
400000
|
5000
|
0
|
5000
|
200
|
5200
|
500000
|
10000
|
0
|
10000
|
400
|
10200
|
1.Individual and Resident of India (< 60 Years )
Total Taxable Income
|
Tax
|
Rebate u/s 87a
|
Tax Payable
|
Cess @ 4%
|
Net Tax Payable
|
300000
|
2500
|
2500
|
0
|
0
|
0
|
350000
|
5000
|
2500
|
2500
|
75
|
2575
|
400000
|
7500
|
0
|
7500
|
225
|
7725
|
500000
|
10000
|
0
|
12500
|
375
|
12875
|
2. Individual and Resident of India (Senior citizens (Age 60 ≥ 80 ) )
Total Taxable Income
|
Tax
|
Rebate u/s 87a
|
Tax Payable
|
Cess @ 4%
|
Net Tax Payable
|
300000
|
0
|
0
|
0
|
0
|
0
|
350000
|
2500
|
2500
|
0
|
0
|
0
|
400000
|
5000
|
0
|
5000
|
150
|
5150
|
500000
|
10000
|
0
|
10000
|
300
|
10300
|