Section 87A ITA 1961 provides REBATE for INDIVIDUAL TAXPAYERS whose TA…

Question

Section 87A ITA 1961 provides REBATE for INDIVIDUAL TAXPAYERS whose TAXABLE INCOME does not exceed:

Accepted Answer

D. Rs 5,00,000 — rebate up to Rs 12,500 (effective full rebate up to Rs 7,00,000 in new tax regime as amended by Budget 2023)

1. Section 87A Income Tax Act 1961: REBATE for INDIVIDUAL taxpayers whose total income does not exceed certain limits:
2. OLD REGIME: Rebate of up to Rs 12,500 for taxable income up to Rs 5,00,000 — effectively zero tax up to Rs 5 lakh.
3. NEW REGIME (introduced Budget 2020, modified Budget 2023):
4. (i) Rebate up to Rs 25,000 for taxable income up to Rs 7,00,000;
5. (ii) Marginal relief for income just above Rs 7 lakh.
6. From AY 2025-26 (Budget 2024 changes): rebate up to Rs 25,000 for income up to Rs 7,00,000.
7. Section 87A rebate is from INCOME TAX (after computation), not from total income.
8. Hence option A is correct (with the 2023 update).
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 87A_

Answer

Rs 50,000 (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A)

Answer

Rs 10,00,000 (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A)

Answer

Rs 1,00,00,000 (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A) (cf. Income Tax Act 1961, Section 87A)