In the 2019 interim Budget, income tax rebate under Section 87A of Income tax Act was increased to ₹12,500, from ₹2,500. The amount of rebate is 100% of income tax payable on the total taxable income of up to ₹5 lakh. Total taxable income or net taxable income is the income after taking into account deductions. But this income tax rebate is only applicable for individuals who have a taxable income of less than ₹5 lakh. Tax experts say that assesses should take benefit of the this income tax rebate to the extent possible as the tax liability come down to zero.

Source: Mint July 04, 2019 01:52 UTC