The existing provisions of Section 87A provide for a maximum rebate of tax of Rs.2,000 provided the total income of the resident individual does not exceed Rs.5 lakhs.
It is proposed to increase the said limit to Rs.5,000.
This increase in limit, in effect, would ensure that an additional income of Rs.30,000 is not subject to tax.
The conditions to claim the said rebate however remains the same.
This amendment will take effect from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-18 and subsequent assessment years.