Section 87A provides an income tax rebate to a resident individual having prescribed income. This rebate is also available to senior citizens. However, for a Super Senior Citizens, this deduction becomes irrelevant.
 For AY 2019-20 and AY 2020-21, the maximum income tax rebate is Rs.2,500/- and Rs.12,500/- respectively.
It is provided before the calculation of Cess of 4%.

Rebate under section 87A for AY 2019-20

Conditions to be satisfied

Under the following conditions rebate is allowed:
  1. You must be Resident Individual
  2. Total income* is up to Rs.3,50,000/-
If both the above conditions are satisfied, rebate under section 87A will be available.
*Total income is explained at the bottom of this article

Maximum Rebate

Rebate shall be lower of the following:
  1. Income tax before the rebate
  2. 2,500
Therefore, the maximum rebate for AY 2019-20 is Rs.2,500/-

Rebate under section 87A for AY 2020-21 

In Budget 2019:

The tax rebate has been increased to Rs.12,500/-.
Through this amendment, every resident taxpayer having total income* up to Rs. 5 lakh won’t have to pay income tax.

Conditions to be satisfied

Under the following conditions rebate is allowed:
  1. You must be Resident Individual
  2. Total income* is up to Rs.5,00,000/-
If both the above conditions are satisfied, rebate under section 87A will be available.

Maximum Rebate

Rebate shall be lower of the following:
  1. Income tax before the rebate or
  2. 12,500/-
Therefore, the maximum rebate for AY 2020-21 is Rs.12,500/-

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