Clause 20 - Amendment of section 87A. - Finance Bill, 2025

Amendment of section 87A. 20. In section 87A of the Income-tax Act, with effect from the 1st April, 2026, (a) in first proviso, (i) in clause (a), (I) for the words seven hundred thousand rupees , the words twelve hundred thousand rupees shall be substituted; (II) for the words twenty-five thousand rupees , the words sixty thousand rupees shall be substituted; (ii) in clause (b), for the words seven hundred thousand rupees at both the places where they occur, the words twelve hundred thousand rupees shall be substituted; (b) after the proviso, the following proviso shall be inserted, namely: Provided further that the deduction under the first proviso, shall not exceed the amount of income-tax payable as per the rates provided in sub-section (1A) of section 115BAC. .