• Feb
  • 28
  • 2013

Tax Relief of Rs. 2000 for Taxpayer having income upto Rs. 5 Lakh

Relief for Taxpayers in the Bracket of Rs.2 Lakh to 5 Lakh Tax Credit of Rs.2000 to Every Person with Total Income upto 5 Lakh -Rebate of Rs 2000 for individuals having total income up to Rs 5 lakh

With a view to provide tax relief to the individual tax payers who are in lower income bracket, it is proposed to provide rebate from the tax payable by an assessee, being an individual resident in India, whose total income does not exceed five lakh rupees. The rebate shall be equal to the amount of income-tax payable on the total income for any assessment year or an amount of two thousand rupees, whichever is less. Consequently any individual having income up to Rs 2,20,000 will not be required to pay any tax and every individual having total income above Rs. 2,20,000/- but not exceeding Rs. 5,00,000/- shall get a tax relief of Rs. 2000/-.

Section 87 has also been consequentially amended.

These amendments will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years.

Related Press Release

RELIEF FOR TAXPAYERS IN THE BRACKET OF RS.2 LAKH TO 5 LAKH
TAX CREDIT OF RS.2000 TO EVERY PERSON WITH TOTAL INCOME UPTO 5 LAKH

New Delhi, February 28, 2013   

The Finance Bill 2013-14 proposes a relief of Rs.2000 to every person who has a total income upto Rs.5 lakh in a financial year. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram said that 1.80 crore taxpayers are expected to benefit to the value of Rs.3600 crore on account of this proposal of tax credit of Rs.2000. He further said that the current slabs were introduced only last year. Hence, there is no case to revise either the slabs or the rates. However, he proposed to give some relief to the taxpayers in the first bracket of Rs.2 lakh to Rs.5 lakh.


7 Responses to “Tax Relief of Rs. 2000 for Taxpayer having income upto Rs. 5 Lakh”

  1. srinivasarangan TS says:

    Sir,

    If my income is with in the prescribed limit to claim the exemption and my tax liability is , for example , Rs.2000/-, under the said rebate will my tax liability become Zero? Please clarify.

    Regards

    Srinivasarangan T S

  2. CA. Subhash Chandra Podder, says:

    Tax credit of Rs 2000/ means enhancement of basic exemption of Rs 2LK. / 2.50 LKs now comes to Rs 2.20 LKs. and 2.70 Lakhs from the assessment year 2014-2015. as per Finance bill 2013 ( 28/02/2013 )for the Income Upto Rs 5Lks.
    example Say ones taxable Income is Rs 2,18,000/and 2,69,000/ ( senior citizen )
    Taxes now to be paid on 2,18,000 is @10% on 18000 (Rs 200,000 basic exemption )= 1800/ ( for the assessment year 2013-2014 ) and for the senior Ctz. Rs 2,69,000/ tax to be paid now assessment year 2013-2014 is on 19,000/ ( 2.69-2.50 Lakhs ) comes to Rs 1,900/ ( being 10% on 19,000/ ) . These benefit will be available form the assessment year 2014-2015 and this amount Upto Rs. 2000/ to be claimed as rebate.
    CA. Subhash Chandra Podder , FCA
    Kolkata

  3. senthil says:

    As per Incometaxinida.gov.in relief is for taxable income and not not total income pls clarify.

  4. JEEVAN KUMAR says:

    Sir

    Tax Relief of Rs. 2000 for Taxpayer having income upto Rs. 5 Lakh “Income means Before deductions or Taxbale Income )..pl clarify…

  5. jaya says:

    please provide an example in case of female individual

  6. Garg Jai Pal says:

    Whether a Senior Citizen will also get benefit of Rs. 2000 as Income tax relief ? Suppose if a Senior Citizen has a taxable income of Rs. Three Lacs, howmuch he has to pay as income tax Rs.3000 or Rs. 5000.

    JAI PAL GARG

  7. Gopathy Padmanabhan says:

    It is a dodgy relief and a sugar coated pill. It is only a “rebate” and old wine in new bottle. Earlier u/s 88 relief was given “upto” Rs.14000, for an investmen of Rs.70,000. Now as you mentioned, the rebate shall be equal to the amount of income-tax payable on the total income for “any assessment year” or an amount of two thousand rupees, whichever is less. Consequently any individual having income up to Rs 2,20,000 will not be required to pay any tax and every individual having total income above Rs. 2,20,000/- but not exceeding Rs. 5,00,000/- shall get a tax relief of Rs. 2000/-.

    What is meant by “any assessment year”? Is it going to be there in the statute books permanently? What guarantee is there that it will not disappear like section 88 ?

    The rebate shall be equal to the amount of income-tax payable on the total income for any assessment year or an amount of two thousand rupees, whichever is less. Then how did the FM give the calculation of 1.80 crore assessees and Rs.36000 crore rebate? Is he so weak in mathematics,though we all know that he is weak in reasoning?

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