Section 88B of ITA, 1961 : Section 88B: [Omitted]

Explanation using Example

Imagine a scenario before the year 2006 where Mr. Sharma, a 67-year-old retiree, is filing his income tax return. Under Section 88B of the Income-tax Act, 1961, as it stood then, he would have been eligible for a rebate on his income tax because he was above the age of 65. This rebate effectively reduced the amount of tax he had to pay. However, after the provision was omitted by the Finance Act, 2005, starting from the 1st of April, 2006, Mr. Sharma would no longer be entitled to this rebate solely on the basis of his age. From that date onward, he would have to pay taxes according to the general rules without any special age-based rebate.