MANAGEMENT

Detailed explanation-1: -Tax rebate under Section 87A 12, 500 if your gross taxable income, post deductions, is not in excess of Rs. 5 lakh. So, in case income tax payment amounts to Rs. 10, 000, Section 87A provides you with a rebate of that amount.

Detailed explanation-2: -To calculate rebate under section 87A, calculate your gross income and subtract the available deductions under Sections 80C to 80U. Now, if your net taxable income is less than Rs. 5 lakhs, you are eligible for the rebate upto Rs 12500 on the tax payable before health and education Cess.

Detailed explanation-3: -If your net taxable income is less than or equal to Rs 5 lakh, (applicable from A.Y 20-21), you are eligible to claim rebate under Section 87A. However, if it exceeds Rs 5 lakh, you pay tax as per the slab rate you fall in during that particular year.

Detailed explanation-4: -/ˈriː.beɪt/ an amount of money that is returned to you, especially by the government, for example when you have paid too much tax: a tax rebate.