Know new rebate under section 87A: Budget 2023:

Know new rebate under section 87A: Budget 2023 The Rebate under Section 87A was first proposed in the year 2013. It was later update in year 2019, and now it has been updated in year 2023. Under the provisions of section 87A of the Act, an assessee, being an individual resident in India, having total income not exceeding Rs 5 lakh, is provided a rebate of 100 per cent of the amount of income-tax payable i.e., an individual having income till Rs 5 lakh is not required to pay any income-tax. From assessment year 2024-25 onwards, an assessee, being an individual resident in India whose income is chargeable to tax under the proposed sub-section (1A) of section 115BAC, shall now be entitled to a rebate of 100 per cent of the amount of income-tax payable on a total income not exceeding Rs 7 lakh. This would mean that no Income Tax is chargeable on a total income not exceeding Rs 7 lakh. Let's see the Slab Rates under New Tax regime: [caption id="attachment_194916" align="alignnone" width="1280"] Know new rebate under section 87A: Budget 2023[/caption] What is the new rebate under section 87A as proposed by Budget 2023? As per these slabs, Income Tax chargeable on a total income of Rs 7 lakh is Rs. 25000. Now as per the proposed amendment any individual with an annual taxable income of up to Rs 7 lakhs is eligible for an income tax rebate of Rs 25000.