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
Available to resident individuals whose total income does not exceed a specified threshold, often changing annually with the budget.
2
This rebate offers a reduction in tax payable for individuals with a total income below the prescribed limit.
3
In the financial year 2023-24, individuals with an income of up to ₹5 lakh can avail a rebate of ₹12,500.
4
The tax liability is less than the rebate amount, the tax payable becomes zero, and no refund is issued for the surplus rebate.
5
This rebate is not available to non-resident individuals, firms and companies who are also excluded from availing of this rebate.
6
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
Proper documentation and adherence to filing deadlines are necessary to ensure the rebate is applied correctly.