Finance Act 2013 has with effect from Assessment Year 2014-15 inserted a new section, namely section 87A.
This newly inserted section provides for a new rebate from income tax up to Rs. two thousand from Assessment Year 2014-15, under section 87A to those resident individuals whose total income does not exceeding Rs. five lakhs
The text of the section is as under:
Rebate of income-tax in case of certain individuals.
87A. An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.