What is the eligibility for claiming rebate u/s 87A?

Ans. For AY 2022-23, following are the conditions for claiming rebate under section 87A:

• An assessee is a resident Individual
• Total Income does not exceed Rs. 5,00,000
• Maximum rebate allowed is 100% of Income tax or Rs. 12,500

Rebate under section 87A is not available to a non-resident individual, resident or non-resident HUF/AOP/BOI and company.

However, a maximum rebate of Rs. 25,000 is allowed under section 87A, If the total income of an resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 7,00,000. Further, if the total income of the resident individual (opting section 115BAC(1A) exceeds Rs. 7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount by which it exceeds Rs. 7,00,000