Rebate U/s 87A for F.Y 2019-20 eligible to claim the rebate of Rs.12,500/- With Automated Income Tax Master of Form 16 Part B for F.Y. 2019-20 which can prepare at a time 50 Employees.

The Finance bill 2019 may be read to the extent of rebate clause only as follows:–

Clause 8 of the Bill seeks to amend section 87A of the Income-tax Act to provide relief to the individual taxpayers by increasing the maximum amount of tax rebate to twelve thousand five hundred rupees from existing two thousand five hundred rupees. The tax rebate shall now be admissible to taxpayers having total income up to five hundred thousand rupees, instead of existing three hundred fifty thousand rupees.

Eligibility factors to claim tax rebate u/s 87A for F. Y 2019-20

The following factors or conditions need to be fulfilled before claiming deductions or rebate u/s 87A.

  • One needs to be a resident INDIAN;
  • Your Net Taxable Income  i.e. total income after all deductions u/s 80C to 80 U is less than or equal to Rs. 5.00 Lakh;
  • The maximum rebate U/S 87A is capped at Rs. 12500 only.  If your tax liability before adding Cess@4% is below Rs. 12500, then you will be allowed rebate up to that amount only;
  • No Non-Resident Indian is entitled to this rebate;
  • No HUF, partnership firm or company is entitled to this rebate.

Who can claim tax rebate under section 87A?

As mandated by the finance bill 2019 the following persons can claim the tax rebate under section 87a.

  • A resident individual;
  • A resident individual whose Net Taxable Income  i.e. total income after all deductions u/s 80 is less than or equal to Rs. 5.00 Lakh;
  • No Non-Resident Indian is entitled to this rebate;
  • To claim this rebate you must not be a HUF, partnership firm or company.

How much is the tax rebate under section 87A?

One should keep in mind that this finance bill 2019 has just enhanced the rebate limit from existing Rs. 2500 to Rs. 12500 only. Rebate u/s 87a is not a new thing. Earlier also it was enforced subject to a different income ceiling. So, the rebate u/s 87a is a mere amendment under finance bill 2019.

For F.Y 2017-18 the existing rebate limit was Rs. 2500 subject to net taxable income up to Rs 3.5 lakh. NOw from F.Y 2019-20, it has been enhanced to Rs. 12500 subject to net taxable income up to Rs.5 lakh.

Download And Prepare At a Time 50 Employees  Automated Income Tax Form 16 Part B (Modified Format) [This Excel Utility PrepareAt a time 50 Employees Form 16 Part B in New Format for A.Y. 2020-21]

  The main feature of this Excel Utility:-

1)   Prepare At time 50 Employees  Excel Based  Form 16 Part B ( Modified Format of Form 16 Part B Vide CBDT Notification No.36/2019 Dated 12/04/2019 ]

2)   All the Amended Income Tax Section have in this utility as per Budget 2019

3)   You can print individual Form 16 Part Part B

4)   Most easy to install just like an Excel File

5)   Easy to Fill all column

6)   Automatic Convert the Amount to the In-Words

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