How is 87A rebate calculated?
To calculate rebate under section 87A, calculate your gross income and subtract the available deductions under Sections 80C to 80U. Now, if your net taxable income is less than Rs. 5 lakhs, you are eligible for the rebate upto Rs 12500 on the tax payable before health and education Cess.
The amount of rebate u/s 87A for FY 2021-22 (AY 2022-23) has been kept unchanged under both the old and new income tax regime. A resident individual having taxable income up to Rs 5,00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).03-Aug-2022
Is 87A applicable in new tax regime?
The amount of tax rebate u/s 87A is restricted to maximum of Rs 12,500. In case the computed tax payable is less than Rs 12,500, say Rs 10,000 the tax rebate shall be limited to that lower amount i.e. Rs 10,000 only.Eligibility of Rebate U/S 87A Limit FY 2020-21.
An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability.
Is income upto 5 lakhs tax free?
What this essentially means is that if the total income of a working individual/citizen is INR 5 lakh or below INR 5 lakh in India, then he/she is eligible to get a tax rebate of up to INR 12,500 as per the recently modified section 87A of the Income Tax Act. So, no tax is required to be paid.13-Jul-2022
Section 87A was introduced in Finance Act 2003 which was changed from time to time. Presently an individual tax payer, who is resident of India for income tax purpose, is entitled to claim tax rebate up to Rs. 12,500 against his tax liability if your income does not exceed ₹5 lakh.17-Apr-2021
How can I save tax on my salary?
15 Tips to Save Income Tax on Salary
Rs 12,500
How much tax do I pay on 7.5 lakhs?
The finance minister announced that individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax, and those earning Rs 7.5 lakh to Rs 10 lakh 15%. Under the old regime, with deductions, these individuals pay 20% income tax.
5 lakh per annum will still need to pay tax as per their slab. If your income is between Rs. 5 lakh to Rs. 10 lakh, you will need to pay 20% of your taxable income to the government.
What salary is not taxable?
Abhishek Soni, CEO, tax2win.in, a tax-filing firm says, "As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs. 5 lakh or less. However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs. 2.5 Lakh (if age is below 60)."06-Jul-2019
While it is advisable to file ITR on or before 31st July 2022 if one's annual income is above ₹2.5 lakh, it is also advisable for those whose annual income is below ₹2.5 lakh under certain circumstances. If an earning individual has incurred losses from the stock market, mutual funds, properties, etc.20-Jul-2022
Who is exempt from ITR?
If you are a resident of India and were 75 or older the year before, that is, in FY 2021–2022, you are exempted from filing an ITR.22-Jul-2022
Basic Exemption 1. Maximum amount of income which is not chargeable to Income-tax in case of Individual, HUF/ AOP/ BOI/ Artificial Juridical Person. Rs. 2,50,000.
How can I pay zero tax upto 15 lakhs?
1. Reduce Your Taxable Income by Up To Rs 1.5 Lakhs (Section 80C, 80CCC, 80CCD)
Tax Deductions under Section 80(C)
How much tax do I pay on 10 lakhs?
Income tax slabs for new and old regime
New income tax slabs for individuals for FY 2020-21
What will be the income tax for 8.5 lakhs?
If an individual has a salary of Rs 8 lakh per annum, and he/she has opted for a new income tax slab regime, then an income tax will be Rs 46,800.What is an Income Tax on a Salary of Rs. 8 Lakhs Per Annum?
Tax-Saving Instruments
What is minimum income for ITR?
The individual must file an ITR if the sum of their professional gross revenues for the preceding year exceeded Rs 10 lakh. A tax return for the year must be filed if TDS or TCS totaled Rs 25,000 or higher. This rule will apply to senior citizens if their combined TDS or TCS is Rs 50,000 or greater each fiscal year.29-Jul-2022
How is 87A rebate calculated?