Free Download Automated Income Tax Preparation Excel Based Software All in One for Non-Govt employees for F.Y. 2019-20 With Rebate U/s 87A for F.Y 2019-20 and A.Y 2020-21. Are you eligible to claim the rebate of Rs.12,500?
there has been a tremendous increase in the numbers of income tax
return filers in very recent years, the Central Government has embraced
this act of taxpayers, and as a result, in the Finance Bill 2019
introduced or rather I would say enhanced the existing income tax rebate u/s 87A of the I.T Act up to 12500 from the F. Y 2019-20. On the other hand, this decision of the Government has made the middle-class people very much happier as this would leave them richer by Rs 12500 annually.
The Finance bill 2019 may be read to the extent of rebate clause only as follows:–
Clause 8 of the Bill seeks to amend
section 87A of the Income-tax Act to provide relief to the individual
taxpayers by increasing the maximum amount of tax rebate to twelve
thousand five hundred rupees from the existing two thousand five hundred
rupees. The tax rebate shall now be admissible to taxpayers having
total income up to five hundred thousand rupees, instead of the existing three hundred fifty thousand rupees.
going in to detail on should know what a tax rebate is all about.
Rebate means acknowledging your liability to pay tax but allowing you
relief or deduction so that you don’t need to pay your tax liability on
the fulfillment of certain conditions. This means the Government is
granting you a relief to pay tax up to a certain limit on attaining
a tax rebate is basically a refund of tax which an individual can claim upfront from his income tax liability. There is a tax liability for you but you are not supposed to pay that as per the rebate u/s 87A.
However, this tax rebate applies only to small taxpayers.
Eligibility factors to claim tax rebate u/s 87A for F. Y 2019-20
The following factors or conditions need to be fulfilled before claiming deductions or rebate u/s 87A.
One needs to be a resident INDIAN;
Your Net Taxable Income i.e. total income after all deductions u/s 80C to 80 U is less than or equal to Rs.5.00 Lakh;
The maximum rebate U/S 87A is capped at Rs 12500 only. If your tax liability before adding [email protected]% is below Rs 12500, then you will be allowed rebate up to that amount only;
No Non-Resident Indian is entitled to this rebate;
No HUF, partnership firm or company is entitled to this rebate.