Section 87A Rebate is applicable on long term capital gain
Section 87A Rebate is Applicable on long term capital gain on immovable property
Rebate of maximum Rs.12500 for resident individuals having total income up to Rs5,00,000 Section 87A.
Central Government has given a tax relief to the individual tax payers who are in lower income bracket( individual having total income up to Rs. 5,00,000) the Act has provided rebate from the tax payable amount by the assessee., if
- The assessee is an individual
- His total income up to Rs. 5,00,000 during the previous year.
- He is resident of India.
Quantum of rebate shall be equal to:
- Rs12500
- the amount of income tax on the total income for year.
whichever is less
Example
-
If a person has total income Rs 4,50,000 as normal tax rate.
Tax amount on total income Rs 4,50,000 is Rs.10,000
Maximum Rs 12500
Whichever is less
Rs.10,000
2. If a person has total income RS 4,00,000 from long term capital gain on immovable property
Tax amount on total income(Special tax rate 20%) Rs4,00,000 is Rs30,000
Maximum Rs 12500
Whichever is less
Rs12500 only
3. If a person has total income Rs5,50,000 at normal tax rate and person has deduction 80C Rs80,000
Tax amount on total income after deduction 80C(550000-80000) Rs4,70,000 is Rs 11000
Maximum Rs.12500
so Rs11000
From the assessment year 2021-22 individual and HUF tax payers have an option to opt for taxation as per new regime without claiming certain exemption
New tax regime rate are following are following
Upto Rs 2,50,000 Nil
From 250001 to 5,00,000 5%
From Rs.5,00,001 to 7,50,000 10%
From Rs7,50001 to Rs10,00,000 15%
From 10,00,0001 to Rs.12,50,000 20%
From 12,50,001 to Rs 15,00,000 25%
Above Rs 15,00,000 30%