It is a good news for all the taxpayers because they can now claim rebate of income tax under section 87A of the Income-tax Act, 1961 that is amended by the Finance Act, 2016. The section 87A was inserted by the Finance Act, 2013 to provide tax relief upto two thousand rupees to the individual tax payers. Not only this as per the Budget 2016, the rebate amount has been increased to five thousand rupees. Subject to the total income for financial year 2016-17 does not exceed ₹ 500000 then the taxpayer will be eligible to claim rebate in income-tax u/s 87A up to ₹5000 at the time of filing the Income Tax Return for assessment year 2017-18. This tax relief will be provided to resident individual tax payers who are in the 10% tax slab.
In other words, any resident individual having total income not exceeding ₹ 500000 shall get a tax relief upto ₹ 5000 i.e. the rebate would be the tax payable subject to maximum ₹5000.
This is keep in mind that this rebate is available to only individual assessee not to other persons like HUF, AOP/BOI, Firm and company. The non-resident individual and resident individual with age of 80 years or more shall not be eligible for rebate under section 87A of Income-tax Act, 1961.
In other words, any resident individual having total income not exceeding ₹ 500000 shall get a tax relief upto ₹ 5000 i.e. the rebate would be the tax payable subject to maximum ₹5000.
This is keep in mind that this rebate is available to only individual assessee not to other persons like HUF, AOP/BOI, Firm and company. The non-resident individual and resident individual with age of 80 years or more shall not be eligible for rebate under section 87A of Income-tax Act, 1961.
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