As per the Central
Finance Budget 2013, The great news about the Income Tax Rebate can get the tax payers who’s
taxable Income not more than 5 Lakhs, It has been announced in Budget
2013 for Assessment Year 2014-15 worth Rs. 2000/-. This rebate can be
availed under section 87A. For more clarity it is necessary to
read clauses 19 and 20 of the bill as given below :-
Clauses 19 and 20 of the Bill seek to amend section 87 and insert a new
section 87A in the Income-tax Act relating to rebate of income-tax in case of
certain individuals.
The proposed new section
87A seeks to provide that an assessee, being an individual resident in India,
whose total income does not exceed five hundred thousand rupees, shall be
entitled to a deduction, from the amount of income-tax (as computed before
allowing the deductions under Chapter VIII of the Income-tax Act) on his total
income with which he is chargeable for any assessment year, of an amount equal
to hundred per cent. of such income-tax or an amount of two thousand rupees,
whichever is less.
Consequential amendments
have been proposed in section 87, so as to provide reference to proposed new
section 87A.
These amendments will
take effect from 1st April, 2014 and will, accordingly, apply in relation to
the assessment year 2014-15 and subsequent assessment years.
