Rebate under section 87A for AY 2018-19 FY 2017-18 reduced to Rs. 2500/-

100 percent Section 87A tax rebate up to income of Rs. 5 lakhs for AY 2020-21 Click Here >>

87A Rebate given in earlier budgets is as under:

(a) Rebate u/s 87A FY 2018-19, AY 2019-20  Click Here >>

(b) Rebate under section 87A for AY 2018-19 

Rebate under section 87A for AY 2018-19 FY 2017-18 reduced to Rs. 2500/-. 

The Union Budget 2017-18 was presented on 1st February, 2017. With a reduction of tax rate to 5% (in place of existing 10%), the Government has reduced the rebate u/s 87A to Rs. 2500/- for individuals having total income (taxable income) up to Rs. 3.5 lakhs.

The effect of reduced rebate 87A would be as under: 

Taxable Income

AY 2017-18

AY 2018-19

Rs. 3,50,000/- 10000/- 5000/-
Less: Rebate u/s 87A 5000/- 2500/-
Net Tax Payable 5000/- 2500/-

The effect of reduction in Rebate on various income grous would be as under:

Total Income (Rs.) Income Tax Rebate u/s 87A Net Tax
Rs. 300000/- 2500/- 2500/- Nil
Rs. 350000/- 5000/- 2500/- 2500/-
Rs. 400000/- 7500/- Nil 7500/-
Rs. 500000/- 12500/- Nil 12500/-

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