Income tax rebate U/s 87A | In 2013-14, the Government of India introduced a rebate U/s 87A. This
deduction helps in reducing the taxpayer’s income tax. It is a benefit provided by the government to
provide incentives and relief to certain categories of taxpayers.
In Budget 2023, the government has announced that anyone who opts for the new tax regime and has a taxable income of Rs. 7 defaults will get a tax deduction of Rs.25, 000.
(Amendment 20 will take effect on April 1, 2023.)
You may also like- Download and Prepare at a time 50 Employees Form 16 Part B for the F.Y.2022-23 and A.Y.2023-24( You can prepare more than 200 Employees Form 16 Part B
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then again prepare 50 Employees and more and more)
Budget 2023 proposed a number of changes, and the aim is to make the new tax regime more beneficial. For FY 2023-24 (AY 2024-25)] the deduction limit is Rs. 7,00,000 under the new tax regime. Therefore, a resident with taxable income up to Rs 7,00,000 will get Rs 25,000 or the amount of tax due as a tax credit. However, for the old tax regime, the threshold will remain the same ie. 12,500 for income up to Rs.5,00,000.
What are the conditions for claiming
exemption under Section 87A?
Income tax credit under Section 87A will be claimed automatically when you file your income tax return. U/s 87 Eligibility for exemption under paragraph A:-.
• Only residents can
• Senior citizens between the ages of 60 to 80 can claim benefits under Section 87A.
• Super old people over the age of 80 cannot claim this discount.
The 4% rate applies to the total amount of tax before health and education are removed.
• Total income after deducting expenses should not exceed Rs. 5 Lakh to Rs. 7 Lakh for FY 2023-24 under the new regime.
What is the difference between income tax
rebates and income tax deductions?
Following are the differences between income tax rebates and income tax deduction
|
Income Tax Rebate |
Income Tax Deductions |
|
Permissible without any investment |
Normally for the amount invested |
|
The taxable income must be up to the prescribed limit |
No restriction on taxable income |
|
NRI and HUF cannot claim |
HUF and NRI can claim. |
|
87A rebate is deducted from the income |
But the deduction is not from the taxable amount |
Features 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 a New or Old Tax
Regime
3) This
Excel Utility has a unique Salary Structure for Government and Non-Government
Employees 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.2023-24 (Update Version)
5) Automated
Income Tax Revised Form 16 Part A&B for the F.Y.2023-24
6) Automated
Income Tax Revised Form 16 Part B for the F.Y.2023-24
