Ans. No, it doesn't mean that!!!,As clarified in Q1 above ,Basic Exemption Limit has not been increased.
“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 the deductions under 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.”
Q10. How will this benefit a senior citizen (age 60 or above) because the exemption limit in his case is already Rs. 2,50,000/- i.e. in excess of Rs. 2,20,000/-?
Ans. Tax Rebate of Rs. 2,000/- is also available to a senior citizen, if the total income is Rs. 5 Lakh or less. Effectively, it means, a senior citizen, both male and female, need not pay any tax on total income of upto Rs. 2,70,000/-. However, this benefit is not available to a super senior citizen (age 80 or above) as his total income up to Rs. 5 Lakh is already fully exempted.
Q13. Whether this rebate is also available to Non resident?
Ans:No , Rebate under section 87A is not available to non resident persons.It is available only to resident of India subject to above conditions stated above.
Q14. If the Total Income is say; Rs. 2,15,000/-, Income tax computes to Rs. 1500/- and Rebate of Rs. 2000/- allowed. Does it mean refund of balance Rs. 500 is available?
Ans. No refund is available because rebate is restricted to the amount of income tax payable.
Q15. Whether Return is required to be filed when the Total Income is upto Rs. 2,20,000/- and after rebate, no tax is payable?
Ans. Yes, Income Tax Return is required to be filed as usual.In fact Income tax return is required to be filed if your Gross Total Income(Income before deduction u/s 80C to 80U) is more than exemption limit.
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