Rebate under Income Tax Section 87A

According to the Section 87A of the Income Tax Act, 1961 :


An assessee, being an individual resident in India, whose total income does not exceed [three lakh fifty thousand] rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of [two thousand and five hundred] rupees, whichever is less.


Image Source : IndianTaxUpdates.com

Rebate under section 87A–FY 2017-18 and FY 2018-19 , Who can avail or claim?


An individual who is resident in India and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A.


Three mandatory conditions are required to be satisfied if an assessee wishes to claim rebate-

  1. Assessee must be a Resident of India;

  2. Assessee must be an Individual Assessee*

  3. Total Income is equal to or less than Rs. 3,50,000**

Notes :

1. *Relief u/s 87A is not available to a Company, AOP, BOI, Trust, Firm or even HUF

2. **Total Income after claiming deduction under section 80C to 80U.

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