How do I claim my US 87A tax rebate?

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 do I claim 87A rebate?

To claim a rebate under Section 87A, the following conditions must be met:

  1. He or she must be an individual Indian resident. …
  2. His or her total income (less deductions under Section 80) should be equal to or less than Rs. …
  3. He or she must be below 80 years of age.

Who is eligible for rebate u/s 87A?

If your net taxable income is less than or equal to Rs 5 lakh, (applicable from A.Y 20-21), you are eligible to claim rebate under Section 87A. However, if it exceeds Rs 5 lakh, you pay tax as per the slab rate you fall in during that particular year.

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How much is US 87A rebate?

Section 87A was introduced in Finance Act 2003 which was changed from time to time. Presently an individual tax payer, who is resident of India for income tax purpose, is entitled to claim tax rebate up to Rs. 12,500 against his tax liability if your income does not exceed ₹5 lakh.

How do I get my tax refund rebate?

Income Tax Rebate – A Detailed Guide

  1. Highlights.
  2. Income tax rebates helps lower your net tax liability.
  3. Section 87A provides an IT rebate of up to Rs.12,500.
  4. You can get a refund by filing and verifying your IT Returns.
  5. Home Loans reduce tax liability through Sections 80C and 24B.

What is the income tax on a salary of Rs 5 lakhs per annum?

What are the different tax slabs and tax rates under the new tax regime?

Total Income per annum Tax Rates
Upto Rs. 2.5 lakh Nil
Above Rs. 2.5 lakh up to Rs. 5 lakh 5%
Above Rs. 5 lakh up to Rs. 7.50 lakh 10%
Above Rs. 7.50 lakh up to Rs. 10 lakh 15%

What tax will I pay on 5 lakhs?

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Tax Slab Old Rates Tax / New Rates
Income from 2.5 Lakh – 5 Lakh 5% 12,500
Income from 5 Lakh – 7.5 Lakh 20% 25,000
Income from 7.5 Lakh – 10 Lakh 20% 7,500
Income from 10 Lakh – 12.5 Lakh 30%

How is 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.

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What is the 80C limit for 2020 21?

Income Tax Deductions in India

Sections Income Tax Deduction for FY 2019-20 (AY 2020-21) Limit for FY 2019-20 (AY 2020-21)
Section 80C Investing into very common and popular investment options like LIC, PPF, Sukanya Samriddhi Account, Mutual Funds, FD etc Upto Rs 1,50,000
Section 80CCC Investment in Pension Funds

How is tax calculated on salary?

TDS TDS or Tax Deducted at Source means the tax is deducted directly from your salary. … After you deduct all the applicable deductions and TDS, the amount that you get is the tax amount you need to pay to the Indian government. If your total income is lesser than 2.5 lakhs, then you do not need to pay any income tax.

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-.

Income tax slabs.

Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Is income upto 5 lakhs tax free?

As per current income tax laws, a person is eligible for tax rebate up to Rs 12,500 under section 87A, if the net taxable income does not exceed Rs 5 lakh. Therefore, the tax liability in such a situation will be zero.

Is rebate allowed to senior citizens?

If both the above conditions are satisfied, rebate of upto 5000 (For FY 2017-18 it is 2500) will be available under Section 87A. This rebate is applied on total tax before adding Education Cess (3%). Please note that the rebate is also available to Senior Citizens who are 60 years old but less than 80 years old.

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How do I know if I can get a tax rebate?

How do I know if I am owed a tax rebate or refund? If you are due a tax rebate HMRC will let you know by sending you a letter called a P800 or a simple assessment letter. P800 letters can also tell you that you haven’t paid enough tax, so don’t get too excited when one comes through your letter box.

What is the maximum amount of tax refund you can get?

It’s $12,000 for individuals, $18,000 if you file as head of household and $24,000 if you’re a married couple filing jointly. Both exemptions and deductions reduce the amount of money you owe Uncle Sam each year and can help you score a bigger refund or at least a lower bill.

How do I get maximum tax refund?

Section 80D

Therefore, health insurance premium paid for self (including spouse and dependent children) and senior citizen parents can help you save tax up to Rs 75,000 in a financial year. If both the taxpayer and parents’ are senior citizens then, the maximum deduction of Rs 1 lakh can be claimed in a financial year.

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