Deceased had total annual income of Rs.4,21,668/- -- As per rates of personal income tax, no income tax was payable on income upto Rs.2,50,000/- -- Rebate upto Rs.1,50,000/- was permissible u/s 80C of the Income Tax Act -- After such rebate income tax of Rs.2,200/- at the rate of 10% on rounded off taxable income of Rs.22,000/- was payable but in view of Section 87 of the Income Tax Act, rebate of Rs.5,000/- was admissible in case of taxable income being less than Rs.5,00,000/- -- Therefore, no income tax was payable and the Tribunal did not commit any error in not making any deduction from income of the deceased towards income tax.

(P&H HC) Decided on: 17.09.2020