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.
