Read the complete guide on income tax with information on tax slab, types of taxes. Now there are lot of doubts on how to avail the rebate from income tax. We give below the income tax rates and slabs applicable for the fy 201516 or ay 201617. In addition, there are other deductions under section 16, 24 etc which could be. To quote section 87a it says that resident individual can claim rebate of upto rs. As per the income tax financial act 2014, the new section 87a is introduced w. Rebate under section 87a of income tax act,1961 section. Now my total income is rs 591684 including the arrears. In budget 2014, taxpayers focus was on section 87a. Assessment year 1516 for men below 60 years of age for senior citizens age 60 years or more but less than 80 years. The income tax rebate under section 87a offers some relief to the taxpayers who fall under the tax slab of 10%.
Ay 201617, the following rates were also applicable for fy 201415 ay 201516. Income tax slabs income tax rates fy 201415 av 201516. The amount of rebate allowable under section 87a has been increased from the existing. To learn more about the income tax slabs ay 1819, click here. Income tax rebate for individuals under section 87a. The rebate under this section is available to resident individuals from a. Rebate allowable under section 87a of income tax act. The rebate available is maximum of 1 100% of tax payable on total income or 2 rs. Income tax rebate under section 87a be money aware blog. How to calculate income tax for fy 202021 the economic times. Suppose your total income in fy 202021 is rs 16 lakh. This article provide quick excel income tax calculator for fy 201516 ay 201617 for individual resident whose age is below than 60 years i. Are you eligible for income tax rebate us 87a income. What is section 87a,how is income tax rebate under section 87a calculated, what is difference.
Section 87a of income tax act, provide for a rebate of an amount equal to hundred per cent of such income tax or an amount of rs. However, the good news is that the income tax slab for ay 201819 has hiked the exemption. Every year the income tax rates are changed and it is important to get the latest income tax rates. We can know more about online income tax return filing. A tax rebate of 10% rs 2000 maximum is available under sec 87a to individuals whose taxable income is in the range of rs 2,00,0015,00,000. Leading site in income tax, investment, personal finance, tds, accounts and in corporate law. The rebate shall be equal to the amount of income tax payable on the total income for assessment year 201718 or an amount of rs. Purpose of 87a rebate for ay 201718 financial year 201617 with a view to providing tax relief to the individual taxpayers who are in lower income bracket, a rebate is provided for under section 87a of income tax act 1961 of india. The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge at the rate of 5% of such income tax, provided that the total income exceeds rs. Income tax department has reduced the rebate amount in the current fy 201718 further it is worth noting that you can claim tax rebate only if you satisfy the following conditions.
Latest income tax slabs and rates for fy 201516 and ay. This section is added in income tax act 1961 for the benefit of common man. This year as well, the indian finance minister nirmala sitharaman announced multiple changes that have taken place in the budget. Finance bill 2014 is silent on the section 87a, which was introduced by finance bill 20 with effect from ay 201415 and provides a rebate of rs.
Download the itr forms for financial year 201516 assessment year 201617 what is efiling of returns. Download rebate us 87a for ay 201617 file in pdf format. Current income tax rates for fy 201920 ay 202021 sag infotech. Therefore, the process of electronically filing your income tax returns is known as efiling of returns. Income tax is a direct tax which is levied by the government. Union budget 201516 and 201415 have not altered the rebate available under section 87a for fy 201516, 201415 or ay 201617, 201516 meaning thereby that effectively there will be no income tax payable up to the total income of rs. Draw a plain paper and write an application for con. As per the income tax financial act 2014,the new section 87a is introduced w. Employers will issue form 16, certificate under section 203 of the incometax act, 1961 for tax deducted at source from income chargeable under the head salaries for all the tax deducted at source while disbursing salaries.
Section 87a of the income tax act, 1961 was introduced in finance act, 20 to give benefit to a large number of people whose net total income is less than rs. It is deductible from incometax before calculating education cess. Income tax slabs and rates for the financial year 201516. Income tax rebate is one of the most important chapters in the book called tax. The rebate under this section is available to the resident individuals w. He is the author of 2 books and has vast experience of representing cases before the tax dept.
Section 87a of income tax act, 1961 provides for a tax rebate of upto rs. Income tax slabs and rates for assessment year 201516. 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 incometax 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 incometax or an. However, for a super senior super senior citizen means a person of an age of 80 years or above at any time during a financial year citizens this deduction becomes irrelevant for ay 201920 and ay 202021, the maximum income tax rebate is rs. Income tax slab rates for individualhuf for fy 201415. Rates of incometax for fy 201415 ay 201516 as per the finance no. Availability of rebate us 87a for the ay 201516 tax. Personal tax rebate ya 2015 as part of sg50 jubilee celebration, all tax resident individuals will receive an income tax rebate of 50% of tax payable, up to a. However if the income exceeds rs 5,00,000 the rebate is withdrawn. Tax rebate of rs 12500 for individuals with taxable income of up to rs 5 lakh is allowed in fy 20192018 ay 202021. Rebate is applicable to those under a specific income. Understanding the whole income tax affair can get confusing. My question is that this arrear should not be added in previous year. I got promotion from 1st jan 2014 and received the pay arrears rs 104474in fy 201516 for last fy 201415.
Under section 87a a tax rebate is allowable to those individuals whose total. With reduction in tax rate of 5% for the income group in rs. Rebate us 87a for ay 201819 fy 201718 as per budget 2017. Complete guide on income tax how to save tax get income tax. Section 87a provides an income tax rebate to a resident individual having prescribed income. Everything you need to know about section 87a income tax. Now question arises was do rebate of income tax under section 87a as applicable for fy 2014 also available for fy 201415 and subsequent years. Further rebate is also available for all the years succeeding a. Income tax slabs and rates for fy 202021 bankbazaar. Therefore, the increased amount of rebate shall take effect from 1st april, 2020 and will, accordingly, apply in relation to assessment year 20202021 and subsequent years. 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. Y 202021, if the following conditions are satisfied. Where short term capital gains are taxed at 15% or the rate of the individuals. A resident individual whose net income does not exceed rs.
My next question is that how should be calculated the income tax for current year. Rebate under section 87a should be 12500 rs or lesser than the total income tax liability. Now the question arises is do rebate of incometax under section 87a as applicable for fy 2014 also available for fy 201415 and subsequent years. Any individual whose annual net income is not more than rs. Quick excel income tax calculator for fy 201516 ay 201617. Hence this provision continues for ay 2015 16 as well. The certificate can be used for computing actual income and tax. Nonresident individualhuf net income range incometax rates health and education cess up to rs. For senior citizen with age group of 60 years or above but less than 80 years than their minimum tax limit is rs. Just to add, even if you could not file return after the last date i. Download income tax calculator for fy 201415 ay 201516.
Income tax slab rates financial year 20162017 assessment year 20172018 know slab rates for individual resident, non resident, aopboi, firm also know about rebate under section 87 a. The existing provisions of section 87a provide for a rebate up to rs. Income tax calculator for fy 201415 ay 201516 taxguru. Section 87a states that taxpayer with an income of less than 5 lakhs will be eligible to get a tax rebate of rs. Income tax rebate under section 87a is allowed as per the following schedule for. Chidambaram has inserted section 87a by allowing a tax rebate of rs. Income tax department has introduced a convenient way to file the return of income by the taxpayers using the internet. As there was no change in income tax slabs for fy 201516 i. Income tax rates and slabs undergo modification and change every year with the change and addition in the union budgets. Given below are the various tables for the latest income tax slabs for the fy 20202021. Tax rebate under section 87a applies to individuals having income upto rs. Section 87a of the income tax act claim tax rebate under.
Income tax slab rates for ay 20152016 financial year. This newly inserted section gives rebate up to maximum of rs. Finance bill 2014 has increased income tax exemption limit by rs. Availabilityincome tax rebate section 87a fy 201415 ay. Calculating rs 5000 tax rebate sec 87a of income tax from. Rebate under section 87a reduced to rs 2500 for ay 201819.
Section 87a provides for income tax rebate to individuals earning income below a. Rebate under section 87a of income tax act, 1961 taxguru. Section 87a of incometax act, provide for a rebate of an amount equal to hundred per cent of such incometax or an amount of rs. Finance act 20, has introduced new section, namely section 87a. Everything you need to know about section 87a income tax rebate. Budget 2019 underlines rebate for individuals with income below rs 5,00,000 us 87a. Further, limit to get deduction under section 80c is increased to rs. The revised income tax slab determines how much you will pay as taxes. Now question arises was do rebate of incometax under section 87a as applicable for fy 2014 also available for fy 201415 and subsequent years. The income tax slab is remain unchanged in this financial year. Rebate under section 87a of the income tax act fintrakk.