What is the rebate for AY 2020-21?

Rs 12,500
The amount of rebate u/s 87A for FY 2020-21 (AY 2021-22) has been kept unchanged under both old and new income tax regime. A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).

What is tax rebate in income tax?

In the most generic sense, a tax rebate is a refund that you are eligible for in case the taxes you pay exceed your liability. For instance, if your tax liability amounts to Rs. 30,000, but your FD issuer pays the Government a TDS amounting to Rs. 40,000 on your behalf, you qualify for a rebate or refund.

Is rebate u/s 87A available in new regime?

Answer: Benefits of rebate under section 87A are same for all resident individuals of all age groups under both existing tax regime and new tax regime. This benefit is however not applicable for NRIs and HUFs. Section 87A provides a rebate of up to Rs 12,500 for income up to Rs 5,00,000 to all resident individuals.

How is income tax rebate calculated?

To calculate rebate under section 87A, calculate your gross income and subtract the available deductions under Sections 80C to 80U. Now, if your net taxable income is less than Rs. 5 lakhs, you are eligible for the rebate upto Rs 12500 on the tax payable before health and education Cess.

How is income tax 2020 2021 calculated?

Therefore, your net taxable income will be Rs 15, 40,000 (Rs 16 lakh minus Rs 60,000). The income tax liability in the new tax regime will be calculated on Rs 15.40 lakh….

S. No.	Income slabs	Income tax rate (\%)
1	Up to Rs 2.5 lakh	Nil
2	Between Rs 2,50,001 and Rs 5 lakh	5\%
3	Between Rs 5,00,001 and Rs 7.5 lakh	10\%

What is rebate income?

Your rebate income is the total amount of your taxable income (excluding any assessable First home super saver released amount) plus the following amounts if they apply to you: adjusted fringe benefits total, which is the sum of.

What is tax rebate for individual Malaysia?

A rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000. [Subsection 6A(2)(a) of ITA 1967.] A rebate of RM400 is granted to an individual whose chargeable income does not exceed RM35,000 and where he / she has been allowed a deduction of RM4,000 for the spouse.

Who is eligible for 87A rebate?

You can claim the benefit of rebate under section 87A for FY 2020-21, and FY 2019-20, subject to the following conditions are satisfied: You are a resident individual. Your total income after reducing the deductions under Chapter VI-A (Section 80C, 80D and so on) does not exceed Rs 5 lakh in an FY.

What is a rebate income?

What is the income limit for section 87A rebate?

Example: If your total income for FY 2020-21 does not exceed ₹5,00,000 then you will be eligible to claim rebate in income-tax u/s 87A up to ₹12,500 at the time of filing your Income Tax Return for AY 2021-22. Thus, this tax relief will be provided to individual tax payers who are in the 10\% tax slab. How is Section 87a rebate calculated?

What is the income tax rebate under Section 80?

Your Total Income after Deductions (under Section 80) doesn’t exceed Rs 3.5 lakh. The rebate is limited to Rs 2500. This means that if the total tax payable is lower than Rs 2500, then that amount will be the rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (4\%).

How to claim tax rebate of 12500 for assessment year 2021-22?

Individual assessee having total income up to ₹5 Lakhs can claim rebate of ₹12500 for assessment year 2021-22 under section 87A of Income Tax Act 1961. You can claim your rebate of income tax under section 87A of the Income-tax Act, 1961 as amended by the Finance Act, 2019.

What is the difference between ITR and rebate U/s 87A?

This is because ITR is required to be filed if the total income exceeded the maximum amount which is not chargeable to income-tax. On the other hand, the rebate u/s 87A shall be given to those resident individuals whose total income does not exceed ₹5,00,000.