Purpose of Section 87A
Section 87A provides tax relief for residents with lower incomes, ensuring they do not bear a heavy tax burden.
Eligibility Criteria
Only resident individuals can claim this rebate.
For AY 2023-24, taxable income after deductions must not exceed INR 5,00,000.
From AY 2024-25, under the new tax regime, the limit is increased to INR 7,00,000.
Senior citizens and super senior citizens are eligible.
Not applicable to long-term capital gains on equity shares or mutual funds under Section 112A.