Automated Income Tax Preparation Software in Excel for the Govt and Non-Govt Employees. Income
tax rebate under section 87A for income up to Rs.5 lakh – has been explained
Section 87A was first started in the Finance Act 2003 which was changed from time to time.
Tax rebate is available for those whose income is not more than Rs 5 lakh at present
The Income Tax Slab Rate has not changed by the Finance Budget 2021 At the same time, however, subsequent governments have proposed tax breaks for taxpayers up to a certain income limit. Currently, tax rebates are available for those whose income is not more than Rs.5 lakh U/s 87A.
What is the correct provision?
Section 87A was intimated in the Finance Act 2003 which was changed from time to time. Currently, an independent taxpayer, who is a resident of India for the purpose of income tax, has Rs. Entitled to claim tax exemption till. 12,500 against your tax liability if your income does not exceed Rs 5 million. However, if the income exceeds this limit, your entitlement to claim a rebate under section 87A is completely lost.
Not everyone is entitled to this discount Although the original discount limit is Rs. Rs 2.50 lakh is applicable to all persons and HUF whether residential or non-resident but the rebate under section 87A is available to one person only and also if he is a resident for the purpose of income tax. Therefore, not all HUFs and non-residents are entitled to this exemption
The eligibility of any income should be taken into consideration
Taxpayers are always confused about which income will be considered to be eligible for this concession. So to begin with, the income that will be considered for this purpose is the income that came after setting all the progress old losses against the current year’s income.
Similarly, from the net income after the set-off of such loss, you will have to reduce all the discounts available under different sections of the VIA chapter. Section VIA includes Section 80C (for LIP, EPF, PPF, ELSS, Tuition Fee, Home Loan Repayment, etc.), Section 80 CCD (NPS), Section 80D (Health Insurance), 80 G (Grants) and 80 TTA and 80 TTB. (Bank interest).
Please note that you do not have the right to set a tax liability for long-term capital gains under section 112A arising out of the sale of listed equity shares as well as mutual fund equity-based schemes, which is payable at 10% of the initial discount. Rs 1 lakh. How rebates actually work
Taxpayers are commonly assumed that if their income is not more than the magic number of Rs. 5 lakhs, they will not have to pay any tax.
This is because the tax rate for general income ranges from Rs 2.50 lakh to Rs 5 lakh at 5% and the tax liability of 5% on Rs 2.50 lakh comes to exactly Rs 12,500. However, your income includes income that is taxed at a higher rate of 15% (short-term capital gains) or 20% (other long-term capital gains), even if your income is taxable.
Not more than five lakhs. One lakh listed shares have one lakh short-term capital gains for your income of Rs 5 lakh and the rest is your regular income. Your tax liability will be Rs. 22,500, inclusive of Rs. 7,500 (5% per 1.50 lakh) + 15,000 (15% per 1 lakh of short-term capital gains). 12500 / – after rebate you have to pay. Rupees Ten Thousand and get benefits as when your income does not cover the threshold of five lakhs.
Download Automated IncomeTax Preparation Excel Based Software All in One for the Government andNon-Government (Private) Employees for the Financial Year 2021-22 and Assessment Year 2022-23 U/s 115BAC
Feature of this Excel Utility:-
1) This Excel Utility Prepare Your Income Tax as per your option U/s 115BAC perfectly.
2) This Excel Utility has all amended Income Tax Section as per Budget 2021
3) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2021-22 (Updated Version)
4) Automated Calculation Income Tax House Rent Exemption U/s 10(13A)
5) Individual Salary Structure as per the Govt and Private Concern’s Salary Pattern
6) Individual Salary Sheet
7) Individual Tax Computed Sheet
8) Automated Income Tax Revised Form 16 Part A&B for the F.Y.2021-22
9) Automated Income Tax Revised Form 16 Part B for the F.Y.2021-22
10) Automatic Convert the amount into the in-words without any Excel Formula