Section 87A Rebate Limit Increased to Rs. 5000 – Budget 2016 + Automatic Income Tax Form 16 Part B for Financial Year 2015-16

Section 87A Rebate Limit Increased to Rs. 5000, Changes in Section
87A by Finance bill 2016,Hi Friends in union budget 2016 Section 87A
Rebate Limit Raised to Rs. 5000. Rebate under Sec 87A: With the objective
of providing relief to resident individuals in the lower income slab i.e. total
income not exceeding Rs. 5,00,000, section 87A is proposed to be amended so as
to increase the maximum amount of rebate available from existing limit of
Rs.2,000 to Rs.5,000.  Earlier this limit is only available for Rs 2000
now this limit is increased by Rs 3000 and now Total limit for Section 87A for
AY 2017-18 is Rs 5000.  Check more details regarding “Section 87A Rebate
Limit Increased to Rs. 5000 – Budget 2016” from below…..
Section 87A
Rebate Limit Increased to Rs. 5000
The existing provisions of section 87A of
Income-tax Act, provide for a rebate of an amount equal to hundred per cent of
such income-tax or an amount of two thousand rupees, whichever is less, from
the amount of income-tax to an individual resident in India whose total income
does not exceed five hundred thousand rupees.

With the objective to provide relief to
resident individuals in the lower income slab, it is proposed to amend section
87A so as to increase the maximum amount of rebate available under this
provision from existing Rs.2,000 to Rs.5,000.

Click to Download the Automatic Form 16 Part B for Financial Year 2015-16 & Assessment Year 2016-17 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B for F.Y.2015-16]

This amendment will take effect from 1st April, 2017 and will accordingly apply in relation to
assessment year 2017-18 and subsequent assessment years.




Clause 45 To Finance Bill 2016

Clause 45 of the Bill seeks to amend section 87A of
the Income-tax Act relating to rebate of income-tax in case of certain
individuals.

The aforesaid section provides that an
individual resident, whose total income does not exceed five hundred thousand
rupees, is eligible for rebate in income-tax equal to hundred per cent. of such
income-tax or two thousand rupees, whichever is less.

It is proposed to increase the amount of
rebate allowable under the said section from the existing two thousand rupees
to five thousand rupees.

This amendment will take effect from 1st April, 2017 and will, accordingly, apply in
relation to assessment year 2017-2018 and subsequent years.

Amendment of section 87A.
In section 87A of the Income-tax Act, for
the words “two thousand rupees”, the words “five thousand rupees” shall be
substituted with effect
from the 1st day of April, 2017.

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