A resident individual can claim a rebate from income-tax under section 87A. Currently, this rebate is available only if his total income does not exceed Rs.3,50,000.
The amount of rebate for the assessment year 2019-20 is limited to Rs.2,500.
From the assessment year 2020-21, this rebate will be available if total income of the resident individual is Rs. 5,00,000 (or less).
The quantum of maximum rebate will be Rs.12,500.
The following table summaries provisions of section 87A before and after this amendment.
Rebate 87A Table (From A.Y. 2014-15 to A.Y.2020-21)
|Different years||Total income should not exceed the amount given below||Amount of rebate u/s 87A|
|A.Y. 2014-15 to 2016-17||Rs.5,00,000||100% of income-tax or Rs.2,000, whichever is less|
|A.Y.2017-18||Rs.5,00,000||100% of income-tax or Rs.5,000, whichever is less|
|A.Y.2018-19 and A.Y.2019-20||Rs.3,50,000||100% of income-tax or Rs.2,500, whichever is less|
|A.Y.2020-21 onwards||Rs.5,00,000||100% of income-tax or Rs.12,500 whichever is less|
Taxable income or total income (i.e. gross total income – deduction under 80C to 80U)
A.Y.2020-21 is Rs.5,00,000 (Situation 1)
A.Y. 5,10,000 (Situation 2)
Tax liability of X is calculation in different cases – age of X at any time during the previous year 2019-20 is
40 Years (Case 1), 60 Years (Case 2) or 80 Years (Case 3)
You can also use income tax calculator for A.Y.2020-21 here.
|Particulars||Age of X 40 Years||Age of X 60 Years||Age of X 80 Years|
|Situation 1||Situation 2||Situation 1||Situation 2||Situation 1||Situation 2|
|Income-tax on total income||12,500||14,500||10,000||12,000||Nil||2,000|
|Less: Rebate u/s 87A||12,500||Nil||10,000||Nil||Nil||Nil|
|Add: Health and education cess||Nil||580||Nil||480||Nil||80|