Finance Bill 2014 has porposed to increaseby Rs. 50000/- and Senior Citizens below the Age of 80 Years. Now Question arises was do of income-tax under section 87A as applicable for FY 2013-14 also available for FY 2014-15 and subsequent years.
Finance Act 2013 has introduced the rebate U/s. 87A and in this section it has not restricted the exemption to any particular Financial or Assessment year. Further in Recently Presentedby Finance Minister Arun Jaitley section 87A was not been amended.
So in our view Rebate U/s. 87A is Available to Resident Individuals , whosedoes not exceed 5 Lakh rupees in even for Financial Year 2014-14 and for Subsequent Years.
of Section 87A is as follows :-
The following section 87A shall be inserted after section 87 byAct, 2013, w.e.f. 1-4-2014 :
Rebate of income-taxcertain individuals.
87A. An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing theunder this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.