Rebate 87A:
Available in A.Y.2014-15:
Rebate of Rs. 2000 for resident individuals having total Income up to Rs. 5 lakh. With a view to provide tax relief to the Individual who are in lower income bracket, a rebate is provided for u/s 87A newly inserted by FA 2013. But to avail benefits under this section these two conditions needs to be satisfied.
Condition:
Tax Payer must be a resident Individual (Ordinary resident)
His total income or net income or taxable income is Rs. 5 lakh or less
Amount of Rebate:
100% of Tax paid on total income or Rs. 2,000 whichever is less. This rebate is available on income tax i.e. before adding CESS.
