Rebate under Section 87A reduced to Rs 2500 for AY 2018-19. Budget 2017 – Rebate reduced to Rs 2500 under Section 87A. Rationalization of rebate allowable under Section 87A. This amendment will take effect from 1st April, 2018. Union budget 2017 is presented by Arun Jaitley on 01-02-2017. As per New Finance bill 2017 Rebate under Section 87A reduced to Rs 2500 for AY 2018-19. Please check more details from below…..
Rebate under Section 87A reduced to Rs 2500 for AY 2018-19
The existing provisions of section 87A provide for a rebate up to Rs. 5000 from the income-tax payable to a resident individual if this total income does not exceed Rs. 5,00,000.
In view of proposed rationalisation of tax rates for individuals in the income slab of Rs. 2,50,000 to Rs.5,00,000,it is proposed to amend section 87A so as to reduce the maximum amount of rebate available under this section from existing Rs. 5000 to Rs. 2500. It is also proposed to provide that this rebate shall be available to only resident individuals whose total income does not exceed Rs. 3,50,000.
This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.[Clause 38]
You May Download Finance Bill 2017 From Below link….
Other Budget 2017 Updates
- Cash Expenses Limit Reduced from Rs 20000 to Rs 10000 u/s 40A(3)
- Base year Changed for computation of capital gains from 1981 to 2001
- Revised Fee for Delayed Filing of Income Tax Return – Budget 2017
- Disallowance of depreciation u/s 32 & capital expenditure u/s 35AD on cash payment
- TDS Rates U/s 194J Reduced from 10% to 2% by Finance Bill 2017
- Deemed profit u/s 44 AD reduced from 8% to 6% for digital transaction
- Income Tax Due Dates 2017, Tax Calendar 2017
- Additional Depreciation – Who can Avail?, availability, Rate of Add Dep
- Tax Audit Limit U/s 44AB Increased From 1 Crore to 2 Crore AY 2017-18
- Threshold limit Increased for maintenance of books of accounts
- Penalty on CA & professionals for furnishing incorrect information in statutory report