Question: What Is The Rebate U/S 87a For AY 2020 21?

What is the rebate u/s 87a for AY 2019 20?

Share articleSource of income (AY 2019-20)Income (Rs)Income-tax (@ 5% above Rs 2.5-5 lakh)5,000Less: Rebate u/s 87A2,5002,500Add: SHEC @4%1009 more rows•Aug 30, 2019.

What is Section 87a relief?

The income tax rebate under Section 87a offers some relief to the taxpayers who fall under the tax slab of 10%. Any individual whose annual net income is not more than Rs. 5 Lakh is eligible to claim tax rebate under Section 87a of the Income Tax Act, 1961. This means an individual can get a rebate on tax of up to Rs.

Can I file ITR for AY 2020/21 now?

All Income Tax Return Preparation Software for AY 2020-21 are now available for e-Filing. ITR 1, 2, 3, 4, 5 & 7 for AY 2020-21 is now available for e-Filing. ITR 6 will be available shortly.

How do you calculate income tax for the financial year 2020 21?

At this point, the income which is still chargeable to tax is Rs 7,90,000. From point 4, Rs 2.5 lakh (Rs 10 lakh minus Rs 7.5 lakh) will be taxed at 15 per cent and the tax liability is Rs 37,500….S. No.Income slabsIncome tax rate (%)6Between Rs 12,50,001and Rs 15 lakh25%7Above Rs 15 lakh30%5 more rows•5 days ago

Can we file ITR for assessment year 2020 21?

The CBDT had recently notified the Income Tax Return Form 1 to Form 7 for the assessment year (AY) 2020-21. However, the income tax return filing is currently available only for those who wish to file ITR 1, ITR 2 and ITR 4 for AY 2020-21.

Is 80c removed in 2020?

[Budget 2020] Tax Rates Lowered But HRA, 80C, and INR 50,000 Standard Deduction Gone. In the Union Budget 2020, finance minister Nirmala Sitharaman proposed a new tax regime with lower tax rates for different income groups. … However, all without deductions.

Is 80c applicable in new tax slab?

Under the new tax regime, an individual cannot avail tax benefit under section 80C on the contribution made to his/her PPF account. However, any interest accrued or maturity amount received from the PPF account continues to be tax-exempt in the new tax structure as well.

What is the rebate for AY 2020 21?

From the AY 2020-21 rebate u/s 87A (only for Individual) is available only if the Net Total Income < Rs. 5,00,000/-. The quantum of maximum rebate will be Rs. 12500/-....Income tax slabs.Taxable incomeTax RateRs. 2,50,000 to Rs. 5,00,0005%Rs. 5,00,000 to Rs. 10,00,00020%Above Rs. 10,00,00030%1 more row•Aug 10, 2020

How can I save tax on FY 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 rebate under section 87a and who can claim it?

Any individual whose annual net income does not exceed than Rs. 5 Lakh qualifies to claim tax rebate under Section 87a of the Income Tax Act, 1961. This implies an individual can get a rebate on the tax of up to Rs. 2,000.

What is 87a under income tax?

Rebate under Section 87A provides for a lower tax payment from individuals earning below a specified limit. According to the Income Tax Department, “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.

How do I claim 87a rebate?

Section 87A claim process An individual whose total annual income is less than or equal to Rs5 lakh and whose total tax payable is over Rs2,000 is eligible to claim tax rebate under Section 87A. This can be done at the time of filing income tax and immediately after adding education cess.

What is 80c in income tax?

It allows taxpayers to reduce their taxable income by making investments and some expenses and thus save on taxes they pay. Currently, section 80C allows deduction from gross total income (before arriving at taxable income) of up to Rs 1.5 lakh per annum on eligible investments and specified expenses.

Is 80c limit increased?

So, we expect that in the Budget 2020 the limit of Section 80C will get hiked from Rs 1.5 lakh to Rs 2.5 lakh. … Thus, if the threshold limit of Section 80C is increased by the FM in the Budget 2020, this will not only boost investments, but also provide a majority of taxpayers the much-needed relief.

How much rebate is available u/s 87a?

Rebate is applicable to those under a specific income: Individuals whose income does not exceed Rs. 3,50,000, are eligible to claim the rebate under section 87A. This rebate is limited to Rs. 2,500 and is applied before adding Education Cess, which is 3%.

How is Section 87a rebate calculated?

Rebate under section 87A will be lower of 100% of income-tax liability or Rs. … Including individuals who taxable income exceeds INR 5,00,000. At the end of the tax calculation, taxpayers must pay the mandatory Health and Education cess. This is applicable for all the taxpayers and is not limited to any exemptions.

What is rebate amount?

A rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively.

What is new income tax slab?

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh …

What is the 80c limit for 2020 21?

The maximum deductions available under a few sections are as follows: Section 80C to 80CCC: ₹ 1,50,000. Section 80CCD: ₹ 50,000. Section 80D: ₹ 30,000 for self, spouse and children, ₹30,000 for parents, ₹50,000 for senior citizens.