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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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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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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How do rebates actually work?
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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.
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