n NISM Certifications
X NISM Series X
Medium

Under Section 87A, a resident individual with total income up to Rs. 5,00,000 is eligible for a tax rebate of:

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Nil

  2. B

    Rs. 5,000

  3. Rs. 12,500

    Correct answer

  4. D

    Rs. 25,000

Why this is the answer

Section 87A provides a maximum rebate of Rs. 12,500 for individuals with income up to Rs. 5 lakh, reducing their tax liability accordingly.

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