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Is Sec 87A Tax Rebate Available under New & Old Tax Regimes? With Auto Calculate Income Tax Preparation Software in Excel All in One for the Government and Non-Government Employees for the F.Y. 2023-24

NEW AND OLD TAX REGIME

In today’s fast-paced world, understanding the tax regulations can be a daunting task. However, when it comes to optimizing your tax liabilities, knowledge is power. This article is your comprehensive guide to Sec 87A tax rebate under both the New and Old Tax Regimes, complete with an introduction to Auto Calculate Income Tax Preparation Software in Excel. Let’s dive right in!

What is Sec 87A Tax Rebate?

 In other words, Sec 87A of the Income Tax Act, of 1961, offers a rebate to individual taxpayers. Therefore, This rebate is designed to provide relief to taxpayers with a taxable income below a certain threshold. For the Financial Year (F.Y.) 2023-24, understanding this rebate is crucial for both Government and Non-Government employees.

Eligibility Criteria

However, To avail of the Sec 87A tax rebate, you need to meet specific criteria:

  1. Resident Individual: Firstly, you must be a resident individual under the Income Tax Act.
  2. Taxable Income: Secondly, your taxable income should not exceed Rs. 5,00,000. Importantly, this limit may vary depending on the assessment year.

Tax Rebate Amount

The rebate under Sec 87A is limited to the amount of tax calculated or Rs. 12,500, whichever is lower. This means that if your calculated tax liability is less than Rs. 12,500, the rebate will be equal to that amount. However, if your tax liability exceeds Rs. 12,500, you will still receive a rebate of Rs. 12,500.

Sec 87A Under the New Tax Regime

The Section 87A Tax rebate is applicable to both the new and old tax regimes for the Assessment Year 2024-25. Individuals with a total taxable income of up to Rs 5 lakh can claim a tax rebate under Section 87A, amounting to a maximum of Rs 12,500, thereby reducing their tax liability to zero in both the Old and New Tax regimes. Moreover, those with a taxable income of up to Rs 7 lakh are entitled to a Section 87A tax rebate of up to Rs 25,000, effectively eliminating their tax liability exclusively in the New Tax regime. These criteria define the eligibility and rebate limits under Section 87A for FY 2023-24.

Sec 87A Under the Old Tax Regime

On the other hand, the Old Tax Regime allows individuals to claim various deductions and exemptions. Sec 87A is equally applicable under this regime, providing relief to eligible taxpayers.

Auto Calculate Income Tax Preparation Software in Excel

Preparing your income tax returns can be a complex task. To simplify this process, many taxpayers rely on Auto Calculate Income Tax Preparation Software in Excel. This software streamlines calculations, ensuring accuracy and efficiency in tax preparation.

How Does it Work?

  1. Data Entry: To begin with, start by entering your income details, deductions, and exemptions into the software.
  2. Automated Calculations: Consequently, the software will automatically calculate your tax liability, factoring in the Sec 87A rebate if applicable.
  3. Ease of Use: With its user-friendly interface, even individuals with limited tax knowledge can navigate the software.
  4. Error-Free: Importantly, the software is designed to identify and rectify errors, ensuring your tax return is error-free.

Conclusion

Sec 87A tax rebate is a valuable provision for taxpayers with income below the specified limit. Whether you opt for the New Tax Regime or stick with the Old Tax Regime, this rebate can reduce your tax liability significantly. Additionally, using Auto Calculate Income Tax Preparation Software in Excel can make the tax filing process seamless and efficient.

In conclusion, staying informed about tax regulations and utilizing available tools can help you maximize your tax savings. So, as the new financial year begins, make sure to explore the benefits of the Sec 87A tax rebate and consider simplifying your tax preparation with auto-calculation software.

Download Automated Income Tax Preparation Excel-Based Software All in One for the Government & Non-Govt (Private) Employees for the F.Y.2023-24 and A.Y.2024-25

Is Sec 87A Tax Rebate Available under New & Old Tax Regimes?
Is Sec 87A Tax Rebate Available under New & Old Tax Regimes?
Is Sec 87A Tax Rebate Available under New & Old Tax Regimes?
Is Sec 87A Tax Rebate Available under New & Old Tax Regimes?

Feature of this Excel Utility:-

1) This Excel utility prepares and calculates your income tax as per the New Section 115 BAC (New and Old Tax Regime)

2) This Excel Utility has an option where you can choose your option as a New or Old Tax Regime

3) This Excel Utility has a unique Salary Structure for Government and Non-Government Employee’s Salary Structure.

4) Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10E from the F.Y.2000-01 to F.Y.2023-24 (Update Version)

5)For instance, Automated Income Tax Revised Form 16 Part A&B for the F.Y.2023-24

6) For instance, Automated Income Tax Revised Form 16 Part B for the F.Y.2023-24

7)For instance, Individual Salary Sheet