Low-income taxpayers can reduce their income tax liability by applying for a rebate under section 87A of the tax code. Those who earn incomes below a certain limit pay marginally lower taxes. In order to be eligible for a rebate under section 87A for fiscal years 2019-20 and 2020-21, the taxpayer must meet the following requirements:
The individual should be a resident individual
In an FY, your total income after reducing the deductions under chapter VI-A (sections 80C, 80D, etc.) does not exceed Rs 5 lakh
There is a limit of Rs 12,500 on the tax rebate. You will not have to pay tax if your total tax payable is less than Rs 12,500. There will be a 4% health and education levy added to the rebate amount before applying the rebate.