How do I claim 87A rebate?
Ava Robinson
Published Feb 22, 2026
To claim a rebate under Section 87A, the following conditions must be met:
- He or she must be an individual Indian resident.
- His or her total income (less deductions under Section 80) should be equal to or less than Rs.
- He or she must be below 80 years of age.
How do you tell the difference between relief and rebate?
The difference between the two is: a tax relief is deduction from the total income to derive your chargeable income, whereas tax rebate is deducted from the actual taxed amount. There are two types of tax rebate applicable for Year of Assessment 2019.
What is the rebate u/s 87A for AY 2020 21?
Rebate limit under section 87A for all the Financial years
| Financial Year | Limit on Total Taxable Income | Amount of rebate allowed u/s 87A |
|---|---|---|
| 2020-21 | Rs. 5,00,000 | Rs. 12,500 |
| 2019-20 | Rs. 5,00,000 | Rs. 12,500 |
| 2018-19 | Rs. 3,50,000 | Rs. 2,500 |
| 2017-18 | Rs. 3,50,000 | Rs. 2,500 |
Who will get rebate u/s 87A?
Anybody and everybody is not entitled to avail this rebate. Though the basic exemption limit of Rs. 2.50 lakh is applicable for all Individuals and HUFs whether resident or non-resident but the rebate under Section 87A is available only to an individual and that too only if he is resident for income tax purposes.
How do I get my tax rebate?
Income Tax Rebate – A Detailed Guide
- Highlights.
- Income tax rebates helps lower your net tax liability.
- Section 87A provides an IT rebate of up to Rs.12,500.
- You can get a refund by filing and verifying your IT Returns.
- Home Loans reduce tax liability through Sections 80C and 24B.
How would you distinguish exempted and tax free incomes?
Income tax exemptions are provided on particular sources of income and not on the total income. It can also mean that you do not have to pay any tax for income coming from that source. For example, income from agriculture is exempted under tax.
How to qualify for the saver’s credit in 2021?
Here’s how to qualify for the saver’s credit on your 2021 tax return: 1 Check the saver’s credit income requirements. 2 Save in a qualifying retirement account, such as a 401 (k) or IRA. 3 Contribute enough for the full credit. 4 Meet the saver’s credit contribution deadline.
How to claim the saver’s credit on your tax return?
Here’s how to qualify for the saver’s credit on your 2021 tax return: Check the saver’s credit income requirements. Save in a qualifying retirement account, such as a 401 (k) or IRA. Contribute enough for the full credit. Meet the saver’s credit contribution deadline.
How to apply for small business rebate NSW?
This rebate helps businesses recover from the impacts of COVID-19 and encourages growth by reducing the cost of running a business. Eligible businesses or not-for-profits only need to apply for the rebate once, but can submit multiple claims until the full value of $1500 is reached.
What do you need to know about Saver’s credit?
The Saver’s Credit applies to individuals with a filing status and income of: To be eligible for the credit you must have been born before January 2, 1993, you cannot have been a full-time student during the calendar year, and cannot be claimed as a dependent on another person’s return.
