{"id":1457,"date":"2026-07-24T11:37:00","date_gmt":"2026-07-24T11:37:00","guid":{"rendered":"https:\/\/peru-spider-574195.hostingersite.com\/rebate-u-s-87a-income-tax-rebate-under-section-87a\/"},"modified":"2026-08-05T06:05:45","modified_gmt":"2026-08-05T06:05:45","slug":"rebate-u-s-87a-income-tax-rebate-under-section-87a","status":"publish","type":"post","link":"https:\/\/peru-spider-574195.hostingersite.com\/rebate-u-s-87a-income-tax-rebate-under-section-87a\/","title":{"rendered":"Rebate u\/s 87A | Income Tax Rebate Under Section 87A"},"content":{"rendered":"<p><strong><a href=\"https:\/\/www.jrcompliance.com\/corporate\/income-tax-return-filing\" title=\"Income Tax Return Filing - JR Compliance\" target=\"_blank\" rel=\"noopener\">Rebate u\/s 87A<\/a> &#8211; reduces the liability of income taxpayers.<\/strong><\/p>\n<p>A rebate u\/s 87 can be claimed, if your concerned <strong>total income does not exceed Rs 5 lakh<\/strong> in a specific financial year, after the chapter VIA deductions. Moreover, after claiming rebate u\/s 87A, <em><strong>your tax liability will become nil.<\/strong><\/em><\/p>\n<p>The tax rebate u\/s 87A has been introduced by the government in the year 2013-14, with the sole purpose to provide <strong>benefits on payable taxes<\/strong>. As mentioned above, rebate u\/s 87A is only applicable or can only be claimed if your annual income <em><strong>meets the specified criteria,<\/strong><\/em> thus, even if your income exceeds Rs one, that is Rs 5,00,001, you won\u2019t be eligible for rebate u\/s 87A.\u00a0<\/p>\n<p>And in the case of the concerned case, normal tax rates will be applicable.\u00a0<\/p>\n<p>Since, under the financial year 2020 &#8211; 2021, the amount of tax rebate is unchanged under both, the <strong>old tax regime and the new tax regime.<\/strong> Thus, if you are eligible and have taxable income, i.e., Rs 5,00,000, you are <em><strong>eligible to receive a tax rebate of Rs 12,500<\/strong><\/em> or <em><strong>equal to the amount of payable tax<\/strong><\/em>, <em>which would be lower.<\/em>\u00a0<\/p>\n<p>With the basic knowledge of what is rebate u\/s 87A, let\u2019s move on to how much rebate u\/s 87A is allowed.<\/p>\n<h2 id=\"how-much-rebate-us-87a-is-allowed\"><strong>How Much Rebate U\/S 87A is Allowed?<\/strong><\/h2>\n<p>Below mentioned is the amount of rebate u\/s 87A is allowed on the amount of up to Rs 5 lakh &#8211;<\/p>\n<ul>\n<li>Rs 12,500<\/li>\n<li>The amount of tax payable<\/li>\n<\/ul>\n<p>Among mentioned amounts to be paid on rebate, you are required to pay which amount would be lower.\u00a0<\/p>\n<p>Now, let\u2019s move forward to understand what is the total taxable income for claiming rebate u\/s 87A.<\/p>\n<h2 id=\"what-is-the-total-taxable-income-for-claiming-rebate-us-87a\"><strong>What is the Total Taxable Income For Claiming Rebate U\/S 87A?<\/strong><\/h2>\n<p>As per rebate u\/s 87A, the total taxable income for claiming the rebate is mentioned below &#8211;<\/p>\n<ul>\n<li>Gross taxable income<\/li>\n<li>Less: reducing\u00a0 u\/s 80C to 80U<\/li>\n<\/ul>\n<p>This can be better understood through an example mentioned below &#8211;<\/p>\n<p>Say, Mr. ABC is an Indian resident of 28 years old, whose income is as mentioned in the table &#8211;<\/p>\n<table>\n<thead>\n<tr>\n<th>Gross total income<\/th>\n<th>Rs 5,75,000<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Investment to u\/s 80C<\/td>\n<td>Rs 1,50,000<\/td>\n<\/tr>\n<tr>\n<td>The medical policy has taken u\/s 80D<\/td>\n<td>Rs 25,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Depending on the provided information, the total taxable income of Mr. ABC would be as followed &#8211;<\/p>\n<table>\n<thead>\n<tr>\n<th>Total income<\/th>\n<th>Rs 5,75,000<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Less : Investment to u\/s 80C<\/td>\n<td>Rs 1,50,000<\/td>\n<\/tr>\n<tr>\n<td>Less : Medical policy taken u\/s 80D<\/td>\n<td>Rs 25,500<\/td>\n<\/tr>\n<tr>\n<td>Total taxable income (TTI)\u00a0<\/td>\n<td>Rs 4,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>From the given data, it is clear that the total taxable income (TTI) of Mr. ABC is Rs 4,00,000, thus he can claim rebate u\/s 87A.<\/p>\n<p>For a better understanding of how we have calculated the rebate u\/s 87A, consider following the below-mentioned steps &#8211;<\/p>\n<h2 id=\"how-to-calculate-rebate-us-87a\"><strong>How to Calculate Rebate U\/S 87A?<\/strong><\/h2>\n<ul>\n<li>Calculate your total gross income.\u00a0<\/li>\n<li>Minus the deduction under 80C to\u00a0 80D.<\/li>\n<li>As per income tax slabs, tax payable will be calculated.<\/li>\n<li>Reduce the amount of allowed rebates.<\/li>\n<li>Lastly, calculate the amount of Health and Education Cess payable @ 4%.<\/li>\n<\/ul>\n<p>Since, it is clear how you can calculate the payable tax, let\u2019s move on to, the steps involved in how to claim a tax rebate under 87A.<\/p>\n<h2 id=\"what-are-the-steps-to-claim-a-tax-rebate-under-section-87a--how-to-claim-a-rebate-us-87a\"><strong>What Are the Steps to Claim a Tax Rebate Under Section 87A | How to Claim a Rebate U\/S 87A?<\/strong><\/h2>\n<ul>\n<li>Calculate the gross total income.<\/li>\n<li>Deduct tax deductions for tax savings, investments, and more.<\/li>\n<li>The total income will be obtained after tax deductions.<\/li>\n<li>In ITR declare your total income.<\/li>\n<li>If income does not exceed Rs 5 lakh, claim rebate u\/s 87A.<\/li>\n<li>The highest rebate to be claimed under rebate u\/s 87A is Rs 12,500.<\/li>\n<\/ul>\n<p>Since you are aware of how to calculate rebate u\/s 87A and the steps to claim a tax rebate under Section 87A, let\u2019s know what are the things you are required to keep in mind while filing for a rebate under section 87A.<\/p>\n<h2 id=\"what-are-the-things-to-remember-to-avail-rebate-under-section-87a\"><strong>What Are the Things to Remember to Avail Rebate Under Section 87A?<\/strong><\/h2>\n<ul>\n<li>The rebate is applicable on <strong>gross total income<\/strong> prior to adding a health and education cess.<\/li>\n<li>Only <strong>Indian residents<\/strong> can claim rebate u\/s 87A.<\/li>\n<li>A senior citizen <strong>over 60 years and below 80 years<\/strong> can claim a rebate under section 87A.<\/li>\n<li>A senior citizen <strong>over 80 clear is not eligible<\/strong> to claim a rebate under Section 87A.<\/li>\n<li>The <strong>rebate amount will be less than the limit specified<\/strong> under Section 87A or total income tax, prior to the addition of the health and education cess.<\/li>\n<li>The rebate u\/s 87A is available under the old tax regime and the new tax regime, both.<\/li>\n<\/ul>\n<h2 id=\"under-what-liabilities-a-tax-rebate-us-87a-is-claimed\"><strong>Under What Liabilities a Tax Rebate U\/S 87A is Claimed?<\/strong><\/h2>\n<ul>\n<li>Normal income, taxed at slab rate.<\/li>\n<li>Short-term equity gains or listed equity shares and mutual funds equity-oriented schemes under Section 111A of income tax, at which <strong>15% of the taxable income is payable.<\/strong><\/li>\n<li>For long-term equity gains, under <strong>Section 112<\/strong> of the income tax, under this, a tax rebate is claimed on the <strong>sale of capital assets<\/strong>, excluding listed equity shares and mutual funds equity-oriented schemes.<\/li>\n<\/ul>\n<h2 id=\"conclusion\"><strong>Conclusion<\/strong><\/h2>\n<p>Understanding what is rebate u\/s 87A, how to calculate rebate u\/s 87A total income, how to claim rebate under Section 87A and other questions. To be honest it is not rocket science such as understand how to apply\/ get a BIS certificate, considering that it involves a definite series of steps, which are mandatory to follow.<\/p>\n<p>Moreover, if you need any assistance in national and global compliance requirements &#8211; we have got you covered.\u00a0 Be it meeting compliance requirements of BIS certification, AERB approval, <a href=\"https:\/\/www.jrcompliance.com\/blogs\/what-is-bee-bureau-of-energy-efficiency-how-does-bee-certification-benefit-you\/\" title=\"What is BEE (Bureau of Energy Efficiency) | How does BEE Certification Benefit You?\" target=\"_blank\" rel=\"noopener\">BEE certification<\/a>, ARAI certification, EPR authorization, and any other compliance-related concern &#8211; <em><strong>consider it done.<\/strong><\/em><\/p>\n<p>Contact our experts to meet your compliance requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rebate u\/s 87A, reduces the liability of income taxpayers. Know all about Rebate u\/s 87A or Income Tax Rebate Under Section 87A, from What is the Total Taxable Income For Claiming Rebate U\/S 87A to How to Calculate Rebate U\/S 87A.<\/p>\n","protected":false},"author":1,"featured_media":2279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard"},"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[58],"tags":[],"class_list":["post-1457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-jrblogs-corporate-taxaccounting"],"_links":{"self":[{"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/posts\/1457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/comments?post=1457"}],"version-history":[{"count":9,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/posts\/1457\/revisions"}],"predecessor-version":[{"id":3211,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/posts\/1457\/revisions\/3211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/media\/2279"}],"wp:attachment":[{"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/media?parent=1457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/categories?post=1457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/peru-spider-574195.hostingersite.com\/wp-json\/wp\/v2\/tags?post=1457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}