Union Budget 2023-24 + FINANCE Bill, 2023

Under the provisions of section 87A of the Act, an assessee, being an individual resident in India, having total income not exceeding Rs 5 lakh, is provided a rebate of 100 per cent of the amount of income-tax payable i.e., an individual having income till Rs 5 lakh is not required to pay any income-tax.

2. From assessment year 2024-25 onwards, an assessee, being an individual resident in India whose income is chargeable to tax under the proposed sub-section (1A) of section 115BAC, shall now be entitled to a rebate of 100 per cent of the amount of income-tax payable on a total income not exceeding Rs 7 lakh.

 

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Full Text:

Union Budget 2023-24 + FINANCE Bill, 2023

Rebate under section 87A expanded to raise the exempt-income threshold for resident individuals under the new tax regime. Rebate under section 87A grants a 100% rebate of income-tax payable to resident individuals whose total income does not exceed the specified threshold. From assessment year 2024-25 the rebate is extended to resident individuals whose income is chargeable under the proposed new tax regime provision (proposed sub section (1A) of section 115BAC), making them eligible for a full rebate where their total income falls within the revised threshold.