Taxexcel: Tax Rebate Rs.2000/- U/s 87A is entitled in the financial year 2014-15 also

Friday 21 November 2014

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Click above link to download the All in One Income Tax Calculator with Automated Form 16 Part B and Part A&B for the Private employees for the Financial Year 2014-15

Section 87A after Budget 2014

The existence of section 87A after budget 2014, since there were no words on the section 87A in the budget, many of our readers are eager to know whether the section 87A still exists or faded away like section 80EE.??

There is good news for all assessees who are getting benefited by section 87A because it will continue to give benefit this year also. Since section 87A is neither withdrawn nor was it for a particular year like section 80EE, so it still holds the ground. Even the Online Tax Calculator present on the Income Tax Site also calculates tax after taking tax rebate u/s 87A into account.

Thus assessee having gross total income between Rs.2.5 lakh to Rs.5 lakh are still able to reduce their tax liability by Rs 2,000. Essentially, there is NIL tax liability for annual incomes up to Rs.2.70 lakh. Calculate your Income tax by this Excel Based Income Tax Preparation Software for the Financial Year 2014-15

Now the tax will be calculated for the current year after giving effect to section 87A.

Click below link to download the All in One Income Tax Calculator with Automated Form 16 Part B and Part A&B for the Private employees for the Financial Year 2014-15

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Wednesday 17 September 2014

Click here to download the All in One Income Tax preparation Excel based Software for the Govt and Non-Govt employees for the Financial Year 2014-15 [ This Excel utility can prepare at a time your Tax computed Sheet + Individual Salary Structure + Individual Salary sheet for Print + Automated HRA Calculation + Automated Arrears Relief Calculation with Form 10E + Automatic Form 16 Part A&B and Part B]

Finance Bill 2014 has proposed to increase Income Tax Exemption Limit by Rs. 50000/- for Individuals and Senior Citizens below the Age of 80 Years. Now Question arises was do Rebate of income-tax under section 87A as applicable for FY 2013-14 also available for FY 2014-15 and subsequent years.

Finance Act 2013 has introduced the rebate U/s. 87A and in this section it has not restricted the exemption to any particular Financial or Assessment year. Further in Recently Presented Budget 2014 by Finance Minister Arun Jaitley section 87A was not been amended. So in the view of new Central Finance Budget it is clear that the Rebate U/s. 87A is Available to Resident Individuals , whose total income does not exceed 5 Lakh rupees in even for Financial Year 2014-14 and for Subsequent Years.

Extract of Section 87A is as follows :-

The following section 87A shall be inserted after section 87 by the Finance Act, 2013, w.e.f. 1-4-2014 :

Rebate of income-tax in case of certain individuals.

87A. 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 this Chapter) 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.