Tax rebate 2017-18 clarification under section 87(A)Under Section 87A rebate provides for income tax rebate to individuals earning income below the specified limit. It is being provided to reduce the tax burden of lower income bracket.
The rebate can be claimed if you satisfy both these conditions:
- You are a RESIDENT INDIVIDUAL.
- Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 3,50,000
If both the above conditions are satisfied, rebate of Rs 2,500 will be available under Section 87A. The rebate is limited to Rs 2,500. Which means if the total tax payable is lower than Rs 2,500, such lower amount of tax will be the rebate under section 87A. This rebate is applied on total tax before adding Education Cess(3%). This rebate is also available to Senior Citizens who are 60 years old but less than 80 years old.
|Tax rebate 2017-18 clarification under section 87(A)|
Explain clearly about Resident individual.