Question: What Is The Rebate For AY 2020 21?

Who is eligible for rebate u/s 87a?

Eligibility to claim rebate u/s 87A: You must be a resident individual taxpayer of India.

Your total annual taxable income after applicable deductions (such as under Section 80) should not exceed Rs 5 lakhs in a financial year.

You can avail a tax rebate capped at Rs 12,500..

How do I get my tax rebate?

Income Tax Rebate – A Detailed GuideHighlights.Income tax rebates helps lower your net tax liability.Section 87A provides an IT rebate of up to Rs.12,500.You can get a refund by filing and verifying your IT Returns.Home Loans reduce tax liability through Sections 80C and 24B.

Is 87a applicable in new tax regime?

Individuals having taxable income of up to Rs 5 lakh will be eligible for tax rebate under section 87A up to Rs 12,500, thereby making zero tax payable in the new tax regime. Under the new tax regime, an individual is eligible for only one deduction under section 80CCD (2). … are not available in the new tax structure.

How do I claim 87a rebate?

One can claim tax rebate under Section 87a of the Income Tax Act if he/she meets with the following conditions:One must be a resident individual.The total income of an individual minus the Deductions (under Section 80) must be equal to or less than Rs. 5 Lakhs.The income tax rebate can be up to Rs. 12, 500.

What is the rebate u/s 87a for AY 2020 21?

The amount of rebate u/s 87A for FY 2020-21 (AY 2021-22) has been kept unchanged under both old and new income tax regime. A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).

What is rebate u/s 87?

A rebate under section 87A is one of the income tax provisions that help taxpayers reduce their income tax liability. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes.

Who is eligible for 87a rebate?

An individual who is resident in India and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs.

Is income upto 5 lakhs tax free?

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).”

How do you calculate rebate u/s 89?

Here are the steps to calculate relief under section 89(1) of Income Tax Act, 1961:Calculate tax payable on total income including arrears in the year in which it is received.Calculate tax payable on total income excluding arrears in the year in which it is received.Calculate difference between (1) and (2).More items…•

What is rebate u/s 89?

Claiming Relief under Section 89(1) on Salary Arrears. … If you have received any portion of your salary in arrears or in advance, or you have received the family pension in arrears, you are allowed some tax relief under section 89(1) read along with Rule 21A.

What is the rebate?

A rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales. … The mail-in rebate (MIR) is the most common.

What is the standard deduction for AY 2020 21?

Therefore, the taxpayer can claim a standard deduction of Rs. 40,000* or the amount of pension, whichever is less. *Increased to Rs 50,000 for FY 2019-2020(AY 2020-21) through the Interim Budget 2019.

Is there any rebate on income tax?

When you minus deductions from the gross total income, you get your taxable income. Tax rebate: … Under Section 87A of the Income Tax Act, those in the ₹5 lakh income bracket, can claim a rebate of upto ₹12,500 in FY 2019-20. It essentially means that if your taxable income is upto ₹5 lakh, you will have to pay zero tax.