When in the total income of an assessee such income is included on which tax had already been paid, then from the amount of tax on total income sum deduction is allowed to him.It is known as rebate of tax in this connection the provision of the income tax act are as under.
*Rebate of tax to a member of an association of persons or body of individuals
(Section 86 and section 110)
When a AOP or BOI has paid tax on its total income at normal rates, the share of member in the total income of the AOP or BOI shall be included in the total income of the members. On such share the member shall be entitled to a rebate of income tax at an average rate of tax.
