The Income Tax Act of 1961 has a section called Section 87A that provides for tax refunds. People earning less than a certain amount are eligible for a tax reduction under the clause established by the Finance Act of 2013. Any resident in India with an annual income of less than ₹ 5,00,000 is entitled to a refund under Section 87 A. People with a total taxable income of less than ₹ 5 Lac are eligible for a complete income tax refund. This refund is exclusively available to people, not businesses, and is computed before the 4% medical and academic cess is added.