Question: What Is SEC 87a Income Tax?

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 can I save my income tax 2020 21?

Tips for Saving Tax in FY 2020-21Invest in Equity-Linked Saving Scheme (ELSS)Invest in the National Pension Scheme.Invest in Sukanya Samriddhi Yojna.Know When to Opt for the New Tax Regime.

What is 16 IA in income tax?

New Standard Deduction u/s 16(ia) applicable from FY 2018-19, A/Y 2019-20. … Deduction u/s 16(ia) states that a tax payer having income chargeable under the head ‘Salaries’ shall be allowed a deduction of ₹ 40,000 or the amount of salary, whichever is less, for computing his total income.

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.

What is rebate under section 87a and who can claim it?

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 you fill rebate u/s 87a?

To claim a rebate under Section 87A, the following conditions must be met:He or she must be an individual Indian resident. … His or her total income (less deductions under Section 80) should be equal to or less than Rs. … He or she must be below 80 years of age.

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.

What is basic exemption limit?

Therefore, under the new tax regime, basic exemption limit will remain Rs 2.5 lakh for all taxpayers.” Under the existing tax regime, the basic tax exemption limit for an individual depends on their age and residential status.

What is the tax rebate for 2019 20?

A rebate of Rs 12,500 will be available for all taxpayers with taxable income up to Rs 5 lakh. This rebate will be available under Section 87A of the Income Tax Act from FY 2019-20 onwards….Related.Taxable income slabsIncome tax rates and cessRs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cess3 more rows•Dec 14, 2020

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

Earlier Tax Rebate Under Section 87A (AY 2019-20) Rebate under section 87A is available in the form of a deduction from the total tax liability and is the lower amount among 100% of income-tax liability or Rs. 2,500. However, if the tax liability exceeds Rs. 2,500, the rebate will be available to the extent of Rs.

What is the income tax slab for AY 2020 21?

Income tax slab rate applicable for New Tax regime – FY 2020-21.Income Tax SlabNew Regime Income Tax Slab Rates for FY 2020-21 (Applicable for All Individuals & HUF)Rs. 5.00 lakhs- Rs 7.5 Lakhs10%Rs 7.5 lakhs – Rs 10.00 Lakhs15%Rs 10.00 lakhs – Rs. 12.50 Lakhs20%Rs. 12.5 lakhs- Rs. 15.00 Lakhs25%4 more rows•5 days ago

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.