Amended and updated notes on section 87 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to rebate to be allowed in computing income-tax.
Chapter VIII (Sections 87 to 89) of the Income Tax Act 1961 deals with the provisions related to rebates and reliefs. Section 87 of IT Act 1961-2023 provides for rebate to be allowed in computing income-tax.
Recently, we have discussed in detail section 86 (Share of member of an association of persons or body of individuals in the income of the association or body) of IT Act 1961. Today, we learn the provisions of section 87 of Income-tax Act 1961. The amended provision of section 87 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 87 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-87: Rebate to be allowed in computing income-tax
Section 87(1) of Income Tax Act
In computing the amount of income-tax on the total income of an assessee with which he is chargeable for any assessment year, there shall be allowed from the amount of income-tax (as computed before allowing the deductions under this Chapter), in accordance with and subject to the provisions of sections 87A, 88, 88A, 88B, 88C, 88D and 88E, the deductions specified in those sections.
Section 87(2) of Income Tax Act
The aggregate amount of the deductions under section 87A or section 88 or section 88A or section 88B or section 88C or section 88D or section 88E shall not, in any case, exceed the amount of income-tax (as computed before allowing the deductions under this Chapter) on the total income of the assessee with which he is chargeable for any assessment year.