Income Tax Query 4 Calculation Of Rebate U S 87a In Case Of Section 115bac 1a New Tax Regime

Income Tax Query 4 Calculation Of Rebate U S 87a In Case Of Section 115bac 1a New Tax Regime Case 1 : total income (without aggregation of agricultural income) exceeds rs 7 lakhs. clause (b) of proviso to section 87a will apply for computation of tax rebate u s 87a. nb: while computing income tax payable on such total income exclude agricultural income. Marginal relief under section 87a of income tax act, 1961 for new tax regime u s 115bac(1a) presently, rebate is allowed u s 87a of rs. 12,500 in old regime of income tax, if any resident individual whose total income during the previous year does not exceed rs. 5,00,000.

Marginal Relief U S 87a For New Tax Regime U S 115bac 1a Under both the old and new income tax regimes, the amount of the rebate under section 87a for fy 2023 24 & fy 2022 23 [ (ay (2022 23) & ay (2023 24)] has remained unchanged. however, from fy 2023 24 due to a change in the slab rates under the new tax regime, the rebate threshold is changed. #4 tax rebate u s 87a | new tax rebate examples | income tax calculation examples | fincalc tvdownload our free android app "fincalc": play.google . As per current provisions, the section 87a rebate is not available to those opting for the new tax regime. this means that even if a taxpayer's income falls below the prescribed limit of ₹12 lakh, they will not be able to claim the rebate under the new tax regime. The change was computation of tax liability has been modified, and the maximum declaration for the section 87a rebate removed. for this, first we need to understand the rebate u s 87a in old tax regime and new tax regime.

Income Tax Rebate U S 87a Learn By Quicko As per current provisions, the section 87a rebate is not available to those opting for the new tax regime. this means that even if a taxpayer's income falls below the prescribed limit of ₹12 lakh, they will not be able to claim the rebate under the new tax regime. The change was computation of tax liability has been modified, and the maximum declaration for the section 87a rebate removed. for this, first we need to understand the rebate u s 87a in old tax regime and new tax regime. The section 87a rebate is calculated based on the income tax payable on income taxed at normal slab rates (as per section 115bac(1a) for new regime or standard slabs for old regime). Now, let’s understand how this calculation will work where you will not be required to pay any tax till the total income of rs.750000 or rs.780000. before moving to the calculation part let’s first understand the slab rate as prescribed u s 115bac of the income tax act which shall be applicable from ay 2024 25. Now from the financial year 2025 26 (income year 2026 27), in the new tax regime, you will get a rebate of up to rs 60,000 under section 87a, if your taxable income is up to rs 12 lakh. Section 87a offers a tax rebate of up to ₹12,500 (or ₹25,000 in the new regime for income up to ₹7 lakh) for resident individuals with total income below the prescribed threshold. the total income includes both normal income and special rate income (like capital gains, winnings, or dividend income).