Discover eligibility criteria for claiming Income Tax Reduction under Section 87A for FY 2023-24 (AY 2024-25) and FY 2022-23 (AY 2023-24).
The new tax regime, applicable to FY 2023-24, Therefore, introduces an income tax reduction of Rs 7 lakh.
The discount under Section 87A enables taxpayers to reduce their income tax liability. In other words, you’re fired. However Claim the discount if your total income, after Chapter VIA deductions, does not exceed Rs 5 lakh in the financial year, resulting in a nil income tax amount after claiming the deduction under Section 87A.
Explore the details of the discount available under Section 87A for FY 2023-24 (AY 2024-25).
In both the old and new income tax regimes, the recovery amount under Section 87A for the tax year 2023-24 remains the same. A resident with taxable income up to Rs 5,00,000 is entitled to a tax rebate of Rs 12,500 or the amount of tax payable (whichever is less). In the new regime, for the financial year 2023-24 (AY 2024-25), a resident with taxable income up to Rs 7,00,000 will receive a tax relief of Rs 25,000. The old tax regime maintains the same rebate of Rs 12,500 for income up to Rs 5,00,000.
For individuals with a total taxable income up to Rs.7 lakh, the new tax regime offers the following tax incentives for the financial year 2023-24: • Rs.25,000 or applicable tax (whichever is less). • Equivalent to the first Rs.12,500 in the initial tax structure.
Download the Excel utility for self-preparation of Income Tax Form 16 Part B, capable of simultaneously preparing Form 16 Part B for 50 employees for FY 2023-24 as per Budget 2023.
