Is Rebate u/s 87A available for Financial Year 2016-17?

Is Rebate u/s 87A available for Financial Year 2016-17?

Rebate of Income Tax under the section 87A is available for the Financial Year 2015-16 and succeeding years as well. This Act was earlier introduced in the year 2013 at the time of making budget for the financial year 2013-14. If you’re not aware of Rebate of Income Tax under the section of 87A, we are here to guide you with a detailed description and understanding about the Rebate u/s 87A. Here is everything you need to know about the Rebate u/s 87A such as calculation of Rebate us 87A for the financial year 2016-17.

You can also find all the information and details regarding the Rebate of Income Tax U/s 87A, about the Section 87A that include meaning of Sec 87A, Rebate U/s, the process of calculating the tax rebate u/s 87A.You can also know about the maximum amount of rebate that is available for an individual, limit of rebate of Income available for the financial year 2016-17 and much more. Have a look!

Latest Update of Budget 2016 about Rebate u/s Section 87A

In a bid to offer assistance and help to the resident individuals who owns a less income lump, it has been proposed and suggested to change section 87A in order to upsurge the maximum sum of rebate that is made available under the provision from prevailing Rs.2, 000 to Rs.5,000. In the latest update of Budget 2016, the maximum amount of rebate of Income Tax has been raised from Rs. 2000 to Rs. 5000.

What is Rebate u/s 87A?

Rebate of Income Tax under the Section of 87A was introduced by P. Chidambaram at the time of presenting Budget for the financial year 2013-14. But, there is some muddle and mess amongst the common people on the subject of the eligibility of an individual and the applicability of this facility rolled out by the government in the latest budget 2016 for the financial year 2016-17.The Section 87A of the Income Tax Act offers that in case a tax payer whose total income does not go beyond Rs 5 lakh are allowed to a rebate from the income-tax that is payable on the tax payer’s total income to the level of an amount which is equivalent to 100% of such income-tax.

Is Rebate u/s 87A available for Financial Year 2016-17?

In the union budget 2016 presented by Arun Jaitley for the current financial year 2016-17, there are no suggested alterations to the Income tax rebate available under the section of 87A. Hence, the rebate under the section 87 A is also available for the financial year 2016-17.

Significant points regarding Rebate u/s 87A

Here are the essential points regarding the Rebate u/s 87A that are to be noted by every tax payer or assessee before filing their Income Tax Returns:

1.Eligible assesses

Rebate of Income Tax under section 87A is available to the individual tax payers who are the citizens of India. This availability of Rebate of Income Tax is not available to the following:

• Organization of individuals
• Association of individuals
• Hindu undivided family
• Company
• Partnership firm
• Trust
• LLP

This benefit is available to all categories of Individuals whether Male or Female or Senior Citizens. But this is not available to very senior citizens and non-residents.

2. Maximum amount of Rebate of Income Tax available

The maximum amount of Rebate of Income Tax which is available under the section of 87A which is a minimum of the following:

1. a) Real Tax accountability
2. b) Maximum Amount of Rebate is confined to Rs. 5000.
3. Limit of Income

All the eligible tax payers who earna net total income up to Rs.5 lakhs are accountable to acquire a tax rebate under the section of 87A. If the income goes beyondRs. 5, 00,000 then, this advantage of Income Tax Rebate is not available to the assesses. Total income for this drive is the income which is calculated less and the tax deductions under the section of 80C to 80U.

4. Rebate is calculated before cess

Income Tax Rebate of Rs. 5000 is permittedprior to the levy of Education Cess and SHEC.

This is all about the Rebate of Income Tax under the section of u/s of 87A and it is applicable to the current financial year 2016-17 and subsequent years.