Section - 20

Amendment of section 87A

Amendment of section 87A.

20. In section 87A of the Income-tax Act, with effect from the 1st April, 2026,—

(a)

in the 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 ¹[all] 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.".

Section 20

Amendment of section 87A

Footnotes