Amendment of section 87A.
45. In section 87A of the Income-tax Act, for the words “two thousand rupees”, the words “five thousand rupees” shall be substituted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 45 of the Bill seeks to amend section 87A of the Income tax Act relating to rebate of income-tax in case of certain individuals.
The aforesaid section provides that an individual resident, whose total income does not exceed five hundred thousand rupees, is eligible for rebate in income-tax equal to hundred per cent. of such income-tax or two thousand rupees, whichever is less.
It is proposed to increase the amount of rebate allowable under the said section from the existing two thousand rupees to five thousand rupees.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to assessment year 2017-2018 and subsequent years.