Section 87A Rebate for AY 2024-25 as per Union Budget 2023-24 after amendment

Section 87A Rebate for AY 2024-25 as per Union Budget 2023-24. Amendment, amount and eligibility

The section 87A of income tax rebate was reintroduced by the Finance Act 2013 w.e.f. 1st April 2014. Earlier the section was omitted by the Finance (No. 2) Act 1967.

The present 100 Percent tax rebate under section 87A up to total income of Rs. 5 lakhs was introduced by the Finance Act 2019 w.e.f. 01.04.2020.

Section 87A Rebate for AY 2024-25

Section 87A rebate has been increased to Rs. 7 lakhs under New Tax Regime. However no changes has been made in the rebate for those not opting New Tax Regime.

Section 87A Rebate under New Tax Regime for AY 2024-25 is as under

– Rebate u/s 87A limit has been increased to Rs. 25000/- for those with taxable income up to Rs. 7 lakhs in new tax regime. 

– New Tax Regime – Tax slabs reduced and tax exemption limit increased to Rs. 3 lakhs

Section 87A Rebate for AY 2023-24

Income Tax Rebate under section 87A of Income Tax Act 1961 provides a rebate from income tax up to Rs. 12500/- to an individual resident assessee whose total income (taxable income) does not exceed Rs. five lakhs.

Thus, for those not opting for New Simplified Personal Income Tax Regime, taking into account deduction available under section 80C, income up to Rs. 6.50 lakhs will be out of tax net

The following table shows the impact of the Section 87A Rebate and income tax to be paid by the taxpayers for AY 2023-24

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• Change in the constitution of Appellate Authority for CAs CSs and Cost Accountants
• Trade Tax refund withheld beyond stipulated period & adjusted from demand unjustified – SC
• Notice issued u/s 143(2) prior to filing of return of income assessee is invalid
• Order u/s 148A(d) passed against non-existent entity is bad in eyes of law – High Court
• Tax authorities not bound with provisions of section 44AE once assessee waived option