Union Interim Budget 2019— No Tax on Total taxable Income up to Rs. 5 Lakh (F.Y. 2019-20)
The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakh to Rs.5 Lakh.
Rebate U/s 87A—Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per amendment, if an individual’s taxable income is upto Rs. 5 lakh then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20. No change in income tax slabs.