How is Section 87A rebate calculated?
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How is Section 87A rebate calculated?
To calculate rebate under section 87A, calculate your gross income and subtract the available deductions under Sections 80C to 80U. Now, if your net taxable income is less than Rs. 5 lakhs, you are eligible for the rebate upto Rs 12500 on the tax payable before health and education Cess.
Which is the best tax slab old or new?
The new tax regime is different in two ways from the old one. Firstly, it has more slabs with lower tax rates. And secondly, all the major exemptions and deductions available to taxpayers in the existing (old) tax regime are not allowed if the new tax regime is chosen.
What is the rebate u/s 87A for AY 2022 23?
Rs 12,500
The amount of rebate u/s 87A for FY 2021-22 (AY 2022-23) has been kept unchanged under both the old and new income tax regime. A resident individual having taxable income up to Rs 5,00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).
Who is not eligible for rebate u/s 87A?
Calculate your gross total income and reduce deductions under Section 80C to 80U. If the same is below Rs 5 lakh, you are eligible for a tax rebate, i.e. full tax up to Rs 12500 will be deducted as per section 87A. If taxable income is more than Rs 5 lakh, then no rebate can be claimed.
What is the income tax slab for old regime?
Scenario 1: Someone claiming few exemptions and deductions
| Tax Slab | Old Rates | Tax (Old) |
|---|---|---|
| 0 – 2,50,000 | 0% | |
| 2,50,000 – 5,00,000 | 5% | 12,500 |
| 5,00,000 – 7,50,000 | 20% | 34,000 |
| 7,50,000 – 10,00,000 | 20% |
What is rebate 87 a?
Rebate u/s 87A provides benefit on tax payment to a RESIDENT INDIVIDUAL. The only condition to avail the benefit is. “Your total taxable income shall not exceed the threshold limit” Only the taxpayers falling under the specified threshold limit can claim the benefit of rebate u/s 87A.
Is 87A applicable in old tax regime?
Individuals having taxable income of up to Rs 5 lakh will be eligible for tax rebate under section 87A of up to Rs 12,500, thereby making zero tax payable in the Old and New Tax regimes.
