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Tax rebate 2000 eligible or not ?

raja (owner) (86 Points)

30 April 2016

Dear Gurus,

I own a shopping complex let out to shops and residents.1) My gross rental Income is Rs 10,00,000. 2) 30 % statutory deuction Rs 3,00,000. 3) Interest paid to bank Rs 3,00,000/-. After deuction of point 2 and 3; Rs 4,00,000/-. is my taxable gross income. Home loan principal is 1,00,000 /- paid. My net income is 3,00,000/-. Tax Slab upto Rs 2,500,00 - NIL. Taxable Income is Rs 50,000/-. Tax payable is Rs 5,000 and Rebate Rs 2,000. Taxpayable is Rs 3,000/-.

Kindly help me if my above calcuation and understangings are wrong.

My Query

1) What is my gross Income ?

2) What is my net income ?

3) am i eligible for tax rebate ?

Gross Income above Rs 10.00 lakh is not eligible for LPG subsity and others.

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4 Replies

mohammad rasool baig (Management Consultant) (1026 Points)
Replied 30 April 2016

1. Your gross total income is income before claiming chapter VI deductions which means Rs 4 Lakhs

2. Your net total income is income after claiming chapter VI deductions which means Rs 3 lakhs

3. Since total income is less than 5 lakhs. then you can claim rebate U/s 87A

1 Like

Vikas Gupta (Tax Executive) (530 Points)
Replied 30 April 2016

1. Your Gross Total Income = Rs. 500000/- arrived as under --

Net Rental Income 700000/- (Rs. 1000000 less Std Ded @ 30% Rs. 300000)

Less: Int. on House Loan u/s 24b 200000/- (being maximum limit u/s 24b)

Gross Total Income Rs. 500000/- (being Income from House Property)

2. Your Net Income = Rs. 400000/- (Rs. 500000 being GTI less Rs. 100000 being principal of H. loan u/s 80C)

3. Since your net taxable income is Rs. 400000 (being less than Rs. 500000/-), you are eligible for tax rebate of Rs. 2000/- u/s 87A.

Note: Pls check once that Rs. 2 lac exemption u/s 24b is for self occupied property.

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(Guest)

If Interest paid on loan to buy rented property is Rs 3,00,000/-, the whole amount is allowed as deduction. The limit of rs 2L is applicable only to self occupied property.

2 Like