Income Tax

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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  • for fy 2018-19
    to get benfit of 87a after deduction under 80c
    can we deduct standard duduction of 40000 on salary and then amount is less than 350000

    should be considered.
    thankyou inadvance

  • Hi
    Rebate under section 87A is provided by employer or I need to take benefit during filing of my tax return?

  • MY TOTAL INCOME INCLUDING SALARY ARREAR IS RS 383484. WHERE ARREAR FOR AY 17-18 IS RS 41175 SO CAN I CLIAM REBATE U/S 87A OF RS 2500 BACAUSE MY TOTAL INCOME FOR AY 18-19 IS RS 342309 (383484-41175)

  • business income = Rs A i.e.8% of turn over
    Shares S.T..capital gain = Rs.B
    Totally Taxable income = Rs.A + B
    U / S 80CCE = Rs. C
    Total Income = Rs.A + B - C
    so hqw much tax i have to pay for A.Y. 2018 / 2019

  • Sir ,when computation of TDS on salary of individual ,which income is less than 3.5 lacs,we can considered rebate u/s 87 a or not??

    • Total yearly Income =A
      Int. if any on H/Loan = B
      Balance Income = A-B= C
      Saving if any say =D
      Tax payable Income = C-D = say E
      Tax calculation =
      a) Tax up to 2.5 lakh --------------------------Nil
      b) remaining Rs.250001-5 lakhs @5%----- say F ( if ur income is less then 5 lakhs and ur
      saving is 1.5 lakh) then ur tax is Zero after the benefits of rebate
      under section 87a , if do not falls in any of the conditions u will have
      to pay tax up to 12500 rupees.
      c) 5lakhs one--10lakhs @20% --- ------------- G
      g) add 1% and 2% other charges in the above F and G u will get ur req. Tax.

  • Your total income Rs. 450000/-
    Tax liability Rs. 7500/-
    E & S Cess Rs. 225/-
    Total Tax Payable Rs. 7725/-

  • In order to give relief to small tax payer the rate was reduced from 10% to 5% and accordinly the relief under dev.87a was reduced to Rs.2500/- from Rs.5000/-

  • please convey the rebate of Interest on HBA for let out propery and self occupied property for the financial year 2017-2018 (A/Y 2018-2019) of computation Income tax liablity

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