Hai,
The exact words stated by Finance minister as
The words used in the budget speech are for general understanding and have no statutory implications. As per new section 87A, “An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.”
That means is the rebate allowed on the tax calculated on the gross total income.
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