{"id":20655,"date":"2019-06-26T20:00:00","date_gmt":"2019-06-26T14:30:00","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=20655"},"modified":"2019-07-05T11:59:54","modified_gmt":"2019-07-05T06:29:54","slug":"tax-rebate-under-section-87a","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/tax-rebate-under-section-87a\/","title":{"rendered":"All you need to Know about Tax Rebate under Section 87A"},"content":{"rendered":"

The Indian tax laws have provisions under the Section 87A, Income Tax Act to lighten the burden of tax liabilities of taxpayers. One of these provisions is Tax rebate . These laws are very helpful to the Indian residents, especially for the low income class individuals. The government provides these generally in the form of rebates, tax exemptions<\/a>, etc.<\/p>\n\n\n\n

What is Section 87A in Income Tax?<\/h2>\n\n\n\n

The Section 87A is a provision under The Income Tax Act to marginally reduce the payable tax amount of individuals. To better understand about the rebate in the Section 87A, firstly we will learn about some of the terms used in taxation. These are Tax Refund, Tax Rebate, Tax Exemption, and Taxable Income. <\/p>\n\n\n\n

Tax Rebate<\/h3>\n\n\n\n

A kind of tax relief given to individuals depending on the amount of their total income is Tax rebate. A rebate is calculated by deducting the relief amount from the total income and then the tax is taken off from the deducted amount.<\/p>\n\n\n\n

\"income<\/figure><\/div>\n\n\n\n

Tax Refund<\/h3>\n\n\n\n

When the\namount paid tax by the taxpayer is more than the actual tax amount to be paid,\nIn that case the extra amount is returned to the taxpayer. This is tax refund.<\/p>\n\n\n\n

Tax Exemption<\/h3>\n\n\n\n

Similarly, Tax exemption is the money related exclusion which reduces the taxable income.<\/p>\n\n\n\n

Taxable Income<\/h3>\n\n\n\n

This is base\nof the total income amount of an individual upon which the income tax system\nimposes the tax.<\/p>\n\n\n\n

Subsequently, The Income Tax Laws of India provides specific reliefs or rebates to reduce the tax liabilities of taxpayers after the formation of Section 87A. <\/p>\n\n\n\n

\"section<\/figure><\/div>\n\n\n\n

What is Tax Rebate under Section 87A?<\/h2>\n\n\n\n

Rebate under Section 87 A provides reduction in the payable tax amount. The rebate is either less than the 100% of the income tax liability or Rs. 2500 whichever is less. This amount is for incomes up to 2.5 lakhs and no rebate is available to individuals having income of more than 3 lakhs according to the current law which will be increased to 5 lakhs in the next financial year.<\/p>\n\n\n\n

Who can Claim Tax Rebate under Section 87A<\/h2>\n\n\n\n

The Income\ntax is a way to reduce to tax amount. Individuals that lie under the following\ncategories can take benefit from it:<\/p>\n\n\n\n