Rebate of income-tax in case of certain individuals

87A. An assessee, being an individual resident in India, whose total income does not exceed ¹five hundred thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions underthis Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of  ²twelve thousand and five hundred.

³[Provided that where the income-tax payable on the total income of the assessee is computed under sub-section (1A) of section 115BAC, this section shall have the effect as if,–– (a) for the words “five hundred thousand rupees”, the words “seven hundred thousand rupees”; (b) for the words “twelve thousand and five hundred rupees”, the words “twenty-five thousand rupees had been substituted]

Notes:

1. Subsitituted by Notification THE FINANCE ACT, 2019

In the following section;

An assessee, being an individual resident in India, whose total income does not exceed three hundred fifty thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of two thousand and five hundred.

the following words shall be subsitituted namely,

An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of two thousand and five hundred.

2. Subsitituted by Notification THE FINANCE ACT, 2019

In the following section;

An assessee, being an individual resident in India, whose total income does not exceed three hundred fifty thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of two thousand and five hundred.

the following words shall be subsitituted namely,

An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of twelve thousand and five hundred.

 3.Inserted by the Finance Bill, 2023 dated 01.02.2023 w.e.f 01.04.2024.