Income Tax Section 87

Other than individuals hufs companies partnership firms etc are not eligible under section 87a.

Income tax section 87. Rebate under section 87a is available in the form of deduction from the tax liability. All individual male female including senior citizen is entitled to avail the benefit of section 87a. The income tax rebate provided in section 87a is offered for people who have a salary below the pre defined limit.

You can claim your rebate of income tax under section 87a of the income tax act 1961 as amended by the finance act 2019. 3 50 000 is entitled to claim rebate under section 87a. One can get a tax rebate of up to rs 2000 under the section 87a.

Criteria for section 87 tax free rollover the predecessor corporations must betaxable canadian corporations all of the shareholders of the predecessor corporations must receive shares of the new amalgamated corporations the shareholders must only receive sharesin the amalgamated corporation no other considerations are allowed. Individual assessee having total income up to 5 lakhs can claim rebate of 12500 for assessment year 2020 21 under section 87a of income tax act 1961. An individual who is resident in india and whose total income does not exceed rs.

Rebate under section 87a will be lower of 100 of income tax liability or rs. Section 87a income tax rebate. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes.

Here are some of the salient features of income tax rebate under section 87a. Any individual whose total net income does not cross rs 5 lakh can claim tax rebate under section 87a of the income tax act 1961. Section 87a of the income tax act 1961 was launched to offer some relief for taxpayers who fall under the 10 tax slab.

Basically this act is there to bring down the tax burden for lower salary bracket people. Section 87a an assessee being an individual resident in india whose total income does not exceed 45 five hundred 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 46 twelve thousand and five hundred rupees whichever is less. Eligibility to claim rebate u s 87a fy 2019 20 ay 2020 21.