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

  1. The assessee is an individual
  2. His total income up to Rs. 5,00,000 during the previous year.
  3. He is resident of India.

Quantum of rebate shall be equal to:

  1. Rs12500
  2. the amount of income tax on the total income for year.

whichever is less

 Example

  1. 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%

 

 

How to claim deduction under section 80gg ?