What is the Income Tax Rebate ?

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The Income Tax Rebate in India provides relief on tax liabilities for eligible taxpayers, here are some key points about the Income Tax Rebate.

1

Eligibility Criteria

Available to resident individuals whose total income does not exceed a specified threshold, often changing annually with the budget.

2

Section 87A

This rebate offers a reduction in tax payable for individuals with a total income below the prescribed limit.

3

Rebate Amount

In the financial year 2023-24, individuals with an income of up to ₹5 lakh can avail a rebate of ₹12,500.

4

Impact on Tax Liability

The tax liability is less than the rebate amount, the tax payable becomes zero, and no refund is issued for the surplus rebate.

5

Exclusions

This rebate is not available to  non-resident individuals, firms and companies who are also excluded from availing of this rebate.

6

No Carry Forward

The rebate cannot be carried forward to the next financial year if not utilized, It must be claimed in the relevant assessment year itself.

7

Documentation and Filing

Proper documentation and adherence to filing deadlines are necessary to ensure the rebate is applied correctly.