Section 87A of Income Tax Act, 1961 provides for a tax rebate of upto Rs. 2,500 applicable in the case of resident individuals having taxable income upto Rs. 3,50,000 in respect of FY 2018-19/ AY 2019-20 (i.e. tax rebate of 100% of income tax liability or Rs. 2,500 whichever is lower).
It may be noted that the Finance Act 2017 has provided for a relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs. 3,50,000/-. The amount of rebate available under section 87A is Rs 2,500/- or the amount of tax payable, whichever is less from FY 2017-18/ AY 2018-19 and onwards.
|Income Tax Slabs/ Rates:||Income Tax Cess, Surcharge & Rebate|
|Resident Individuals||Education Cess Rates|
|NRIs/ HUFs/ AOP/ BOI/ AJP||Surcharge Rates|
|Partnership Firms and LLPs||Marginal Relief from Surcharge|
|Domestic Companies||Rebate u/s 87A for Individuals|