Taxes made easy’, was always an ever promoted agenda
of the Indian government. With the announcement of the Budget 2019-2020,
the government briefed for tax goals of the economy and the essential amendments
required in the present direct tax laws. Several changes to the tax rules were
proposed for the coming year 2019-2020. One such key amendment was made under
Section 87A of the Income Tax Act.
As per the Income-tax Act, 1931 any individual being
a resident of India, having a taxable income below the exemption limit is
entitled to claim a rebate under Section 87A.
Section
87A – Basics
Section
87A in the Income-tax Act was proposed by the Finance Bill of 2013 to provide a
basic tax rebate to the taxpayers having a low-income background. As per the
existing provisions, any individual whose income lies below Rs 3,50,000 is
eligible to claim a tax amount rebate under this section. The section states
for the tax rebate available to an Individual taxpayer which can be 100% of the
total tax amount calculated of his total income or Rs 2500 whichever is lower.
Budget 2019 Update: Adding numerous tax benefits for the taxpayer, the
the government further hiked the minimum tax rebate limit to Rs 12,500 from Rs 2500
under Section 87A.
Section 87A – Eligibility
To claim
rebate under Section 87A one should:
– Be a
resident individual taxpayer of India
– Hold
total income after deducting eligible deductions under Section 80, below the
total exemption limit.
Note: The rebate shall;
– be
available on an amount of tax calculated before adding any Education or related
cess.
– be
available to only an Individual & not to any Firm/Company/HUF. Senior
citizens above 60 years can also claim an exemption under this section.
Thus, as
applicable from FY 2019-2020, an individual taxpayer having income below Rs
5,00,000 becomes eligible to claim tax rebate available under Section 87A.
The feature of this Excel The utility is the following:-
1) This Excel Utility can prepare automatic Tax Calculation as
per new Finance Budget 2019
2) The Salary Structure as per the Government and All of
Non-Govt(Private) employee’s Salary Pattern
3) Automated Individually Salary Sheet for each Employee
4) Automated Income Tax Salary Sheet for each Employee
5) This Excel Utility calculate your House Rent Exemption
Calculation U/s 10(13A)
6) Automated Income Tax Form 16 Part A&B for F.Y. 2019-20 in
New Format
7) Automated Income Tax Form 16 Part B for the F.Y. 2019-20 in
New Format
8)
Automated Arrears Relief Calculator U/s 89(1) with form 10e for the F.Y.
2019-20
