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Rebate of income-tax in case of certain individuals

87A. An assessee, being an individual resident in India, whose total income does not exceed ¹five hundred thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions underthis Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of ²twelve thousand and five hundred.

³[Provided that where the income-tax payable on the total income of the assessee is computed under sub-section (1A) of section 115BAC, this section shall have the effect as if,–– (a) for the words “five hundred thousand rupees”, the words; (b) for the words “twelve thousand and five hundred rupees”, the words “twenty-five thousand rupees" had been substituted]

³[''Provided that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, and the total income—

(a) does not exceed ⁴[“twelve hundred thousand rupees”], the assessee shall be entitled to a deduction from the amount of income-tax (as computed before allowing for the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to one hundred percent. of such income-tax or an amount of ⁵[“twelve hundred thousand rupees”], whichever is less;

(b) exceeds ⁶[“twelve hundred thousand rupees”] and the income-tax payable on such total income exceeds the amount by which the total income is in excess of ⁶[“twelve hundred thousand rupees”], the assessee shall be entitled to a deduction from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income, of an amount equal to the amount by which the income-tax payable on such total income is in excess of the amount by which the total income exceeds ⁶[“twelve hundred thousand rupees”].'']

⁷[“Provided further that the deduction under the first proviso, shall not exceed the amount of income-tax payable as per the rates provided in sub-section (1A) of section 115BAC.”]

Notes:

1. Subsitituted by Notification THE FINANCE ACT, 2019

In the following section;

An assessee, being an individual resident in India, whose total income does not exceed three hundred fifty thousand, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income tax or an amount of two thousand and five hundred.