Increase in rebate under section 87A

Effective from: A.Y.2017-18

(i) Under section 87A, a rebate of an amount equal to 100% of income-tax or an amount of ` 2,000, whichever is less, is allowed from the amount of income-tax payable by an individual resident in India whose total income does not exceed ` 5 lakh.

(ii) In order to provide further relief to resident individuals in the lower income slab, section 87A has been amended to increase the maximum amount of rebate available under this provision from existing ` 2,000 to ` 5,000 from A.Y.2017-18.