The government has not changed the basic exemption limit of 2.50 lakhs for a while as the government
does not want people to step out of the tax net and be exempt from filing the ITR. However, at the
same time, successive governments have proposed tax exemptions for taxpayers up to certain income
limits. Tax exemption is currently available for those whose income does not exceed Rs. 5 lakh. This
exemption is available in section 87A.
Section 87A was introduced into the
Finance Act 2003 which was amended from time to time. Currently, an individual
taxpayer, resident in
Feature of this Excel Utility:-
1) This
Excel utility prepares and calculates your income tax as per the New Section
115 BAC (New and Old Tax Regime)
2) This
Excel Utility has an option where you can choose your option as New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Government and Non-Government
Employee’s Salary Structure.
4) Automated
Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the
F.Y.2000-01 to F.Y.2021-22 (Update Version)
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2021-22
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2021-22
No one and everyone can take advantage of this exemption. Although the basic exemption limit of Rs. 2.50 lakh is applicable to all natural persons and HUF, resident or non-resident, but the exemption under section 87A is only available to a natural person and also only if a resident is for income tax purposes. Therefore not all HUF and non-resident persons are entitled to this exemption.
What income must be considered for the eligibility criteria
There is always this confusion in the minds of taxpayers as to what income should be considered in order to qualify for this exemption. In the first place, the income to be considered for this purpose is the income that is received after deducting all the old anticipated losses with the current year's income. Likewise, from the net profit after such loss adjustment, you must deduct all available deductions under the various sections of chapter VI A. Chapter VI A includes the deduction for various items such as Section 80C (for LIP, EPF, PPF, ELSS, tuition, home loan repayment etc.), Section 80 CCD (NPS), Section 80D (Health Insurance), 80 G (donations) and 80 TTA and 80 TTB (bank interest).
YOU MAY REQUIRE THE BELOW GIVEN FORM 16 FOR THE FINANCIAL YEAR 2021-22
Or
Or
Or
