Income Tax Slab for the F.Y.2021-22

Tax Rebate Rs. 12,500/- Under section 87 A.The government has yet not altered the basic exemption limit of Rs 2.50 lakh for some time because the government does not want people to get out of the tax net and get an exemption from ITR filing. At the same time, however, successive governments have offered tax breaks for taxpayers up to a certain income limit. At present, tax exemption is available for those whose rebate is not more than Rs 5 lakh. This exemption is available under Section 87A. Let us discuss how this works for you.

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Tax Rebate Rs.12,500/- U/s 87 A


What is the correct provision?

 

Section 87A was introduced in the Finance Act 2003 which changed from time to time. If your income is not more than 5 lakh, his tax liability is 12,500.

 

Anyone and everyone will not get a chance to get this discount. Although the basic discount limit is Rs. 2.50 lakhs is applicable to all persons residing or non-resident and HUF but exemption under section 87A is available only to one person and even if he is a resident for income tax purposes. So not all HUFs and non-residents are eligible for this discount.

 

Any income should be considered for eligibility criteria?

Taxpayers have always had the misconception that any income should be considered for the purpose of being eligible for this discount. This is the income on which your final tax liability is calculated. So, to begin with, the income considered for this purpose is the income that came after closing all the old loss accounts against the current year's income. Similarly, from net income after this type of loss set-off,

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Income Tax Rebate U/s 87 A

You need to reduce all available discounts under different sections of the VIA chapter. There are cuts for various items under Section VIA such as Section 80C (LIP, EPF, PPF, ELSS, Tuition Fee, Home Loan Repayment etc.), Section 80 CCD (NPS), Section 80D (Health Insurance), 80 G (Donation) ) And 80 TTA and 80 TTB (bank interest).

 

This exemption can be adjusted against any tax liability and cannot be adjusted

Not that you can get a discount of up to 100 rupees. Twelve Thousand Five Hundred entitled U/s  87A can be claimed against the tax liability of any nature. This tax exemption can be claimed in the case of long-term capital gains under section 112, the general income taxed at the slab rate. Equity-based schemes of mutual funds in addition to shares.) In addition to short-term capital gains on listed equity shares,

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State of Assam

How do rebates actually work?

 Tax Payers are generally under the impression that if their income does not exceed the minimum threshold amount of Rs. 5 lakhs, he/she will not have to pay any tax. This is because the tax rate for normal income ranges from Rs 2.50 lakh to Rs 5 lakh and the tax liability of 5% on Rs 2.50 lakh comes to exactly Rs 12,500. However, if your income includes taxable income at the rate of 15% (short-term capital gains) or 20% (other long-term capital gains), you will have to pay no more than five lakhs, even if you have income.

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State of Jharkhand

For the income of your income, one lakh out of 5 lakh listed shares have one lakh short-term capital gains and the balance is your regular income. Your tax liability will be Rs. 22,500, including Rs. 7,500 (5% over 1.50 lakhs) + 15,000 (15% over 1 lakhs of short-term capital gains). 12500 / - after discount you have to pay Rs. 10,000 / - and cess even when your income does not exceed the limit of five lakhs.

 Download Automated Income Tax Preparation Excel Based Software All in One for the Andhra Pradesh State Govt Employees for the F.Y.2021-22

State of Andhra Pradesh