what is the limit of exemption u/s 87A in financial year 2016-17
Alakshendra Rai (Service) (40 Points)
01 March 2017what is the limit of exemption u/s 87A in financial year 2016-17
The rebate shall be equal to the amount of income tax payable on the total income for assessment year 2017-18 or an amount of Rs. 5,000, whichever is less
Key Point :-
Individual resident of India,
Whose Total Income is up to Rs. 5,00,000
Shall be allowed a rebate, From Income Tax,
100% of Income Tax or Rs.5,000, Whichever is less
Alakshendra Rai
(Service)
(40 Points)
Replied 01 March 2017
kiran
(Student)
(98 Points)
Replied 01 March 2017
By the way it is not exemption but it is a rebate.
For F.Y.2016-17 the rebate under Section 87A of Income Tax Act will be Total amount of tax payable or Rs.5000/- whichever is less.This provision applies only to those persons whose gross total income does not exceed Rs.5,00,000/-.
Alakshendra Rai
(Service)
(40 Points)
Replied 01 March 2017
kiran
(Student)
(98 Points)
Replied 01 March 2017
Originally posted by : Ashish Rai | ||
i have downloaded pdf finance act 2016 it iswritten in thtIn section 87A of the Income-tax Act, for the words “two thousand rupees”, the words “five thousand rupees” shall be substituted with effect from the 1st day of April, 2017. |
This is for F.Y.2017-18.
CA CMA Sagar Jaiswal
(Finance professional)
(665 Points)
Replied 06 March 2017
First of all it is rebate not exemption (Rebate means that reduces tax amount)
for a/y 2017-18 it is Rs.5000/-
Earlier it was rs. 2000/-
Calculation
Total income xxx
less: deduction under chapter vi a(xx)
Net taxable income xx
Tax on above (condition net taxable income must be upto Rs.500000/-)
than rebate will be lesser of actual tax or Rs.5000/-
thanks