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Procedure for Claiming deduction under Section 88B of the Income Tax Act,1961

The deduction u/s 88C of the Income Tax Act, 1961 is a special rebate provision for Indian senior citizens.

The deduction is available to all Indian citizens whose age is more than 65 years.

The deduction is available as a rebate from the tax payable.

The rebate is allowed subject to a maximum amount of Rs. 15,000(for Assessment years 2001-2002 and thereafter).

The individual has to first compute the total income under the various heads of income as per the law.

The individual then has to arrive at the tax payable(excluding surcharge).

The individual then has to deduct the rebate available u/s 88B. If the tax payable is Rs. 15000 or less, the tax payable after rebate u/s 88B would be NIL.

If on the other hand, the tax payable comes to more than Rs. 15,000 , then the maximum rebate allowable to the individual would be restricted to Rs. 15,000.

The rebate u/s 88B is to be claimed before claiming any rebate under Section 88 for LIP Paid, PPF ,etc.