Who Can Claim the Rebate?
Not everyone can claim this rebate. Here’s who gets to enjoy this tax perk:
- Resident Individuals: Only individuals whose primary residence is in India for at least 182 days in a financial year are eligible.
- Senior Citizens (60-80 years): This age group gets the full benefit of the rebate.
- Total Income Threshold: Your total income, after claiming deductions under Chapter VI-A (like section 80C for investments), should not exceed INR 5 lakhs for the relevant financial year.
- Tax Regime: This rebate is available under both the old and new tax regimes.
Eligibility for Claiming Rebate u/s 87A
Do you fall under the income bracket of INR 5 lakhs or less? If yes, you might be eligible for good tax relief in the form of a rebate under Section 87A of the Income Tax Act, 1961. But before you jump for joy, let’s understand the nitty-gritty of this tax benefit and see if you qualify!