Click here to Download the Automated All in One TDS on Salary for Govt & Non-Govt Employees ( This Utility can prepare at a time your Tax Compute Sheet + Salary Details Sheet + Arrears Relief Calculation U/s 89(1) + Form 10E + HRA Calculation + Automatic Form 16 Part B and Form 16 Part A&B) for the Financial Year 2014-15 & Ass Year 2015-16
As
per the Newly Passed Finance Bill 2014-15 the Income Tax Section 87A (
Tax Rebate Rs.2,000/-)which was Introduce by the Finance bill 2013 has
been continue for the Financial Year 2014-15 and Assessment Year
2015-16. This rebate can be availed Tax payer/Assessee under section
87A. It is necessary to read clauses 19 and 20 of the bill to make it
more clear-
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 (Rs. 2,000/-) two thousand
rupees, whichever is less.
Consequential amendments have been proposed in section 87, so as to provide reference to proposed new section 87A.
Note:
- 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 also.
- Rebate is available only to individuals
- No rebate to Non Resident.
- If the total tax payable is less than Rs. 2000/-, rebate is restricted to “total tax payable”.
- Rebate benefit is not applicable to a super senior citizen, since he is already fully exempted up to Rs. 5 lakh.
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