Automatic Income Tax Calculator which Can prepare at a time Tax Computed Sheet + Salary Sheet + Form 16 Part A&B + Form 16 Part B + Automatic HRA relief calculation + Automatic Arrears Relief Calculation in one file. This Automatic Excel Utility can use the both of Govt and Non Govt Employees for the Financial Year 2013-14 and Assessment Year 2014-15.
In the Budget 2013 Speech, The Finance Minister had said, “Nevertheless, I am inclined to give some relief to the tax payers in the first bracket of Rs. 2 Lakh to Rs. 5 Lakh. Assuming an inflation rate of 10% and a notional rise in the threshold exemption from Rs. 2,00,000/- to Rs. 2,20,000/- I propose to provide a tax credit of Rs. 2,000/- to every person who has a total income upto Rs. 5 Lakh”. As stated by the Finance minister above, the detailed explanation of the newly inserted section is mentioned below:
- The above amendment was bought by inserting a new Section 87A in the Income Tax Act, 1961.
- It is to be noted that, the above amendment does not mean that basic Exemption Limit has been raised from Rs. 2,00,000/- to Rs. 2,20,000/-.
- It is a Rebate and not a deduction, meaning an assessee will get reduction in the “Income tax payable” by him.
- It is available ONLY to an ‘INDIVIDUAL’ assessee, resident in India who’s “Total Income” during the PY does not exceeds Rs. 5 Lakh.
- However, the above rebate benefit is not applicable to a super senior citizen, since he is already fully exempted up to Rs. 5 lakh.
- It is applicable for Assessment Year 2014-15 and thereafter.
- This Rebate not available to a Non resident individual.
- If the total tax payable is less than Rs. 2000/-, rebate is restricted to “total tax payable”.
- Income Tax Circular -No.8/2013