thanks Ankit for your detailed explanation and example .

i also support that rebate will be available . java utility is providing rebate  does'nt matter of type of income/head .

87a nowhere says that rebate is available to Individual charged under tax slab of 10%

moreover words LOWER INCOME BRACKET  are only used in the memorundum they are not used in law . law is what matters .

Originally posted by : Ashwin
	HOW COME HE IS ELIGIBLE FOR 87A....HE IS TAXED FLAT 30% ON LOTTERY WINNING...AS PER QUESTION RAISED...ITS HIS ONLY INCOME....HE IS BELOW TAXABLE....QUESTION OF 87A DOES NOT ARISE HERE SINCE THERE IS NO LIABILITY TO PAY TAX

flat rate of 30% only determine tax , and rebate u/s 87a is given after you determine all tax whether form one flat rated source or from many other source .

YES MR.KAPOOR, ACCORDING TO THE QUESTION,HIS INCOME IS JUST RS.70,000/- WHICH WAY FAR BELOW THE LIMIT. 87A WILL COME INTO PICTURE WHEN HIS INCOME CROSSES THE LIMIT AND HERE IT DOESN'T.

His income is not 70000 his income is 100000 . 

87a come into picture wgen there are two things :

1. total income is below 500000

2. there should be some tax , does'nt matter on which source of income it is leived  .

in mr X case both of these conditions are fullfilled . tax is there rebate will be provided.

Mr. Kapoor 

You din't get me I was talking about the intention of the legislature so to understand the intention the words " Lower Income Bracket" matters.

Reasonable interpretation is required to understand the provisions of sec 87a. 

Also if the intention was to allow benefit of section 87a to lottery winners then they would have never deprived the assessee to avail benefit of maximum non taxable limits pescribed.

And most important is to understand the intention of legislature behind the law.

This is the final comment from my side .

Admit it or not these are the facts .

1. section 87a does'nt prohibit it . it only require TI <=500000

2. java utility is allowing rebate in case of lottory income also .

3. you cannot file a return without getting rebate .

4. Lower Income Bracket only means R-IND whose TI is not exceeding 5 lakh .

if you says intention of law was not to allow rebate in special rated income , the law is wrongly framed BUT the point of consideration is that WHY THERE NEVER HAS BEEN ANY AMANDMENT IN 87A since 2013 , instead they increase the benefit from 2000 to 5000 giving the same reason .

the intention of the law can also be proved from memorumdum 2016

" The existing provisions of section 87A of Income-tax Act, provide for a rebate of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less, from the amount of income-tax to an individual resident in India whose total income does not exceed five hundred thousand rupees "

if you guys still feel different : 

LETS AGREE TO DISAGREE..

Hi Friend, you all are doing very well job and I am not going into what sections says or what it means.

Here I am attacting a file created in ITR Utility download from Income Tax Deptt. and just fill Iottery Income In Other Sources Income Head and Check the Result.

According to this file, Rebate u/s 87A is available no matter Income is Taxable at 10% or 30%, Total Income must be Less than equal to Rs.5,00,000

From Income Tax Website:

"[Rebate of income-tax in case of certain individuals.

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."

Friends, I have created an Income Tax Calculator for AY 2016-17 and here I am sharing link of it. Kindly download it and use it and the most Important after use, please feedback to me to make it more efficient and user friendly.

https://files.acrobat.com/a/preview/b9fcf798-cb68-4b0f-8072-2ae2ec542660

Thanks & Regards

Rohit Goyal

Dear Friends

if java utility is giving me tax rebate of Rs. 2000 i will take it happily.

If they frame the section poorly, which results in giving me a benefit of tax rebate, i will take it.

Its the law that matters and not the intention.

when i read the section i had no doubt that rebate will be available in teh case of question i raised.

its just that i recalled the speech so i was interested in asking the experts first.

once u guys say java utility is providing the rebate i am happy.

my query is settled.

thank you all for ur replies.

regards

The Rebate under section 87A, Shall not be allowed on Tax at Special Rates.
Special rates tax includes following incomes:-

1) Casual Income

2) Long Term Capital Gain

3) Short Term Capital Gain u/s 111A

Mr. X has only lottery income of Rs. 1,00,000 in Previous Year 15-16. 

His income chargeable to special rate.

Income tax 30% of 100000 = Rs. 30000

So he will NOT get rebate of Rs. 2000 for A.Y. 2016-17 as per sec-87A of Income Tax Act, 1961.

Thanks and Regards

Durgesh Vashisth

Ms. Shivani,

I downloaded java utility from Income Tax site.

https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.H T M L?nextPage=efile

Java utility not giving rebate on those tax liabilities raised from Casual income, LTCG & STCG us111a.

Thanks and Regards

Durgesh Vashisth