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

Is income upto 5 lakhs tax free?

Abhishek Soni, CEO, tax2win.in, a tax-filing firm says, “As per the proposals of Budget 2019, there will be no tax liability if your taxable income is Rs.

5 lakh or less.

However, ITR filing is still mandatory if your income exceeds the basic exemption limit of Rs.

2.5 Lakh (if age is below 60).”.

How do I know if I have tax rebate?

If you are due a tax rebate HMRC will let you know by sending you a letter called a P800 or a simple assessment letter. P800 letters can also tell you that you haven’t paid enough tax, so don’t get too excited when one comes through your letter box.

How do I get my tax rebate?

Section 80C In simple way, you can reduce up to Rs 1, 50,000 from your total taxable income, and it is applicable for individuals and hindu undivided families (HUFs). Fill your income tax return(ITR). The Income Tax Department will refund the excess money to your account.

How do you fill rebate u/s 87a?

To claim a rebate under Section 87A, the following conditions must be met:He or she must be an individual Indian resident. … His or her total income (less deductions under Section 80) should be equal to or less than Rs. … He or she must be below 80 years of age.

Is there any rebate on income tax?

When you minus deductions from the gross total income, you get your taxable income. Tax rebate: … Under Section 87A of the Income Tax Act, those in the ₹5 lakh income bracket, can claim a rebate of upto ₹12,500 in FY 2019-20. It essentially means that if your taxable income is upto ₹5 lakh, you will have to pay zero tax.

Is 80c removed in Budget 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. … Four new tax slabs have been introduced, making it a total of seven slabs.

What is the tax free amount for 2020?

$6,000Past TFSA Contribution LimitsYearTFSA Limit2020$6,0002019$6,0002018$5,5002017$5,5008 more rows•Oct 7, 2020

What is the income tax slabs for FY 2019 20?

Tax Rates for Individuals as per budget 2019-2020Income Tax Slab (in Rupees)Tax Rate for Individual Below the Age Of 60 Years0 to 2,50,000*Nil2,50,001 to 5,00,0005% of total income exceeding 2,50,0005,00,001 to 10,00,000Tax Amount of 12,500 for the income up to 5,00,000 + 20% of total income exceeding 5,00,0001 more row•Dec 11, 2019

What is the rebate for AY 2020 21?

The amount of rebate u/s 87A for FY 2020-21 (AY 2021-22) has been kept unchanged under both old and new income tax regime. A resident individual having taxable income upto Rs 5,00,000 will get a tax rebate of Rs 12,500 or equal to the amount of tax payable (whichever is lower).

Can I file ITR for AY 2020/21 now?

The last date of income tax return (ITR) filing for FY 2019-20 (AY 2020-21) is extended to 10th January 2021. For tax audit and TP audit, the last due date is 15th february 2021. The due date for filing income tax returns is the date by which the returns can be filed without any late fee or penalty.

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

How to use the Income tax calculator for FY 2020-21 (AY 2021-22)?Choose the financial year for which you want your taxes to be calculated.Select your age accordingly. … Click on ‘Go to Next Step’Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (More items…

What are the exemptions for income tax?

These include deductions under: section 80C for a maximum of Rs 1.5 lakh claimed by investing in specified financial products, section 80D for health insurance premium paid, 80TTA for deduction on savings account interest earned from a bank or post office etc.

Which deduction is still allowed for 2020?

Deduction from family pension under Section 57. Any deduction under chapter VIA (like Section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on….Share article.Taxable Income SlabsTax RatesRs 15 lakh and above30%6 more rows•Feb 7, 2020

How much rebate is available u/s 87a?

The rebate under Section 87A was first proposed in the year 2013 and has been in effect for several years, with it being updated as recently as 2019. Under the latest provisions of Section 87a, any individual with an annual taxable income of up to Rs 5 lakhs is eligible for an income tax rebate of Rs 12,500.

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.

What is the maximum amount you can save on income tax?

What is the Maximum Income Tax You can Save (FY 2019-20)?S. No.Tax SectionsMaximum Tax Exemption Limit (Rs.)180C/ 80CCC/ 80CCD150,000280CCD(1B)50,000324200,000480E50,00012 more rows•Feb 24, 2020

Is 87a applicable in new tax regime?

Individuals having taxable income of up to Rs 5 lakh will be eligible for tax rebate under section 87A up to Rs 12,500, thereby making zero tax payable in the new tax regime. Under the new tax regime, an individual is eligible for only one deduction under section 80CCD (2).

What is the rebate for AY 2019 20?

The interim budget for FY 2019-20 has introduced full tax rebate under section 87A for individuals earning a net taxable income upto Rs. 5 lakhs which means the maximum tax rebate limit under section 87A has been increased to Rs. 12,500 for the qualified taxpayers from Rs. 2,500.

Who is eligible for rebate under section 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 can I save my income tax 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 Section 87a under income tax?

A rebate under section 87A is one of the income tax provisions that help taxpayers reduce their income tax liability. Taxpayers earning an income below a certain limit have the benefit of paying marginally lower taxes.