Quick Answer: What Is 87a Rebate In Income Tax?

What is rebate on income tax?

A refund on taxes when the liability on tax is less than the tax paid by the individual is referred to as Income Tax Rebate.

Taxpayers generally receive a refund on the income tax if they have made payment of tax more than they owe.

At the end of the fiscal year, they will receive the refund of tax money..

How do I know if I have 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.

How do I get my tax rebate?

5 lakh, you stand to qualify for a rebate through Section 87A. Similarly, in case of a mismatch in income tax payment and tax liability, you can obtain an income tax rebate or refund by filing your Income Tax Returns and verifying them. You can then check your income tax refund status online.

What is the due date for tax filing FY 2019/20 AY 2020 21?

31st December 2020The income tax return (ITR) filing deadline for FY 2019-20 (AY 2020-21) is extended to 31st December 2020. For tax audit and TP audit, the due date is 31 January 2021. The due date for filing income tax returns is the date by which the returns can be filed without any late fee or penalty.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

How can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

How is Section 87a rebate calculated?

Rebate under section 87A will be lower of 100% of income-tax liability or Rs. … Including individuals who taxable income exceeds INR 5,00,000. At the end of the tax calculation, taxpayers must pay the mandatory Health and Education cess. This is applicable for all the taxpayers and is not limited to any exemptions.

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 incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

Who is eligible for rebate u/s 87a?

Section 87a – Income Tax Rebate Any individual whose annual net income is not more than Rs. 5 Lakh is eligible to claim tax rebate under Section 87a of the Income Tax Act, 1961. This means an individual can get a rebate on tax of up to Rs. 2, 000.

Who can avail rebate u/s 87a?

Rebate is applicable to those under a specific income: Individuals whose income does not exceed Rs. 3,50,000, are eligible to claim the rebate under section 87A. This rebate is limited to Rs. 2,500 and is applied before adding Education Cess, which is 3%.

Will I automatically get a tax rebate?

Each year HMRC runs a review of PAYE records which throws up whether you have overpaid or underpaid tax. Under this type of review if you have overpaid you should receive a refund of tax automatically from the tax office. A common reason to be owed a rebate in this way is if you had an incorrect tax code.