Who can take an 87A rebate?
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The Section 87A rebate can be claimed by resident individuals in India, including senior and super senior citizens, provided their net total taxable income does not exceed a specified threshold for the relevant financial year.
Who can claim an 87A rebate?
An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A. Rebate under section 87A is available in the form of deduction from the tax liability. Rebate under section 87A will be lower of 100% of income-tax liability or Rs.
What are the conditions for an 87A tax rebate?
Eligibility Criteria for Section 87A Rebate 2025
Under the new tax regime: income should not exceed ₹12,00,000. Under the old tax regime: income should not exceed ₹5,00,000 after claiming deductions under Sections such as 80C, 80D, or 80G.
Who is entitled to a rebate?
A tax rebate is essentially a return of excess amounts paid on your tax bill and usually occurs when you have paid more tax than you were supposed to over a financial year. Tax rebates can happen for several reasons. For instance, if your employer deducted more tax from your salary than necessary.
Who has to file 10iea in income tax?
Form 10-IEA is a declaration made by the return filers for choosing the 'Opting Out of New Tax Regime'. An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income must submit Form 10-IEA if they wish to pay income tax as per the old tax regime.
87a Tax Rebate New Tax Regime | STCG Tax Rebate 87a | Section 87a of income tax act
What are the benefits of the 10iea?
Form 10-IEA is a declaration that helps taxpayers continue with the old tax regime if they prefer its benefits over the new one. It acts as a formal choice for those who want to retain deductions and exemptions, ensuring flexibility in taxation.
Does NRI need to file ITR in India?
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
Who is eligible for a rebate?
It is provided only to resident individuals, earning income within 10% slab rate. Rs. 25,000 rebate is allowed for income within Rs. 7 lakh under the new regime and Rs. 12,500 for income earned within Rs. 5 lakh under the old regime. Persons having income within these income level do not need to pay any income tax.
Who can claim a rebate?
As per Section 87A of the Income Tax Act, if the total income of an individual does not exceed a certain threshold (currently Rs. 5 lakh), they are eligible for a rebate of up to Rs. 12,500. Section 80C: Under Section 80C, individuals can claim a rebate on investments made in specified financial instruments.
What is the maximum income to qualify for tax credits?
If you're a single parent, you can earn up to £18,725 and still receive the full amount of tax credits you're entitled to. For couples with children, your combined income can be up to £25,780 before your tax credits start reducing. Your tax credits don't just stop when you hit these limits.
Why am I not getting a rebate under 87A?
New tax regime: “The ITR utility does not allow automatic 87A rebate when the total income exceeds Rs 7 lakh includes special rate income like STCG under Section 111A or LTCG under Section 112A. The rebate can only be claimed if the slab-rate income alone is within the Rs 7 lakh limit.
What are the conditions for 87A?
Section 87A provides eligible taxpayers with a full income tax rebate if their total income is below Rs 5 lakh under the old tax regime.
What are some common mistakes while claiming 87A?
Q9: Are there any common mistakes to avoid while claiming Section 87A? Common mistakes include underreporting income, failing to disclose all income sources, or missing eligible deductions. Ensure your total taxable income remains under ₹5 lakh to qualify for the full rebate.
What income is considered for section 87A?
If an individual earns ₹12 lakh as normal income, ₹60,000 as short-term capital gains, and ₹1 lakh as long-term capital gains, they qualify for the Section 87A rebate on normal income. The long-term capital gain is fully exempt as it is below ₹1.25 lakh.
Are senior citizens eligible for the 87A rebate?
Senior citizens above the age of 60 years and below the age of 80 can avail rebate u/s 87A. ISuper senior citizens above the age of 80 years do not hold eligibility to claim rebates u/s 87A. The rebate amount will also be lower than the specified limit under Section 87A or the total taxable income prior to tax.
How do I claim 87A while filing ITR?
Claim the Rebate: When you fill out your ITR, you will come across a section where you can claim Section 87A rebate. Enter the amount of rebate you are eligible for, which is ₹12,500 if your taxable income is below ₹5 lakh.
Who is eligible for an 87A rebate?
This tax rebate gives individuals that earn under ₹12 lakh in a financial year exemption from taxes. However, this is only applicable if you choose the new tax regime. If you are a salaried individual, you also are eligible for a standard deduction of ₹75,000. This increases the limit of tax-exemption to ₹12.75 lakh.
Who is allowed to claim a refund of tax?
An income tax refund is the return of excess taxes that you have paid to the government during a financial year. When your tax liability (the amount you owe to the government) is less than the sum of the taxes you have paid, you are eligible for a refund.
How to avoid 40% tax?
How to avoid paying higher-rate tax
- 1) Pay more into your pension. ...
- 2) Reduce your pension withdrawals. ...
- 3) Shelter your savings and investments from tax. ...
- 4) Transfer income-producing assets to a spouse. ...
- 5) Donate to charity. ...
- 6) Salary sacrifice schemes. ...
- 7) Venture capital investments.
Who qualifies for tax rebates?
Rebate eligibility depends on your age—under 65 for the primary rebate, 65+ for the secondary rebate, and 75+ for the tertiary rebate. You must also be liable for tax, meaning you pay income tax to qualify. Additionally, you could be eligible if you've overpaid on pension income or received an incorrect tax code.
Can I appeal if my 87A rebate is denied?
Vasudevan says: “The Circular empowers CPC to issue rectification orders and raise tax demand in cases where 87A rebate has been allowed to the taxpayers. However, the taxpayer receiving such notice, can litigate the matter by filing an appeal before Commissioner of Income-tax (Appeals).
Can we claim any exemption under the new tax regime?
In the old tax regime, the basic exemption limit for senior citizens is INR 3,00,000/- and for super senior citizens, it is INR 5,00,000/-. In the new tax regime, no income tax is payable upto the total income of INR 7 lakh.
Should NRI file ITR1 or ITR2?
If you are an NRI with income in India, you will have to use ITR-2 or another applicable form depending on your income sources. For example, a non-resident earning rental income or interest in India must file ITR-2 (since ITR-1 cannot be used by non-residents).
Who is exempted from filing an income tax return in India?
Who is Exempted From the ITR Filing Process? According to Section 194P of the IT Act, taxpayers 75 years or above are exempt from filing IT returns.
What are the tax rules for NRI returning to India?
An NRI is not liable to pay tax on income earned outside India. However, an NRI returning to India gets a NOR status, eventually converted to a ROR status. A resident Indian is liable to pay tax on global income under the income tax laws.