Amendment of section 87A.
43. In section 87A of the Income-tax Act, the following proviso shall be inserted with effect from the 1st day of April, 2024, namely:––
“Provided that where the income-tax payable on the total income of the assessee is computed under sub-section (1A) of section 115BAC, this section shall have the effect as if,––
(a) for the words “five hundred thousand rupees”, the words “seven hundred thousand rupees”;
(b) for the words “twelve thousand and five hundred rupees”, the words “twenty-five thousand rupees”
had been substituted.’.
Notes on Clauses:
Clause 43 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 said section provides that an assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent. of such income-tax or an amount of twelve thousand and five hundred rupees, whichever is less.
It is proposed to insert a proviso to the said section to provide that where the income tax payable on the total income of the assessee is computed under sub-section (1A) of section 115BAC, the said section shall have the effect as if,––
(i) for the words “five hundred thousand rupees”, the words “seven hundred thousand rupees”;
(ii) for the words “twelve thousand and five hundred rupees”, the words “twenty-five thousand rupees”,
had been substituted.
This amendment will take effect from 1st April, 2024 and will, accordingly, apply in relation to the assessment year 2024-2025 and subsequent assessment years.
