Want to know how to avail tax exemption under section 87 A
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160396 Points)
Replied 27 October 2016
Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000.
The rebate is adjusted, while calculating tax liability. Generally, e-filling software itself substracts the rebate amount from the total tax payable (if applicable).
kusum
(graduate)
(60 Points)
Replied 27 October 2016
If I am a salaried person, the total income here refers to the GROSS INCOME WITHOUT PERK or GROSS INCOME or total gross income. Please clarify.Thank you in advance.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160396 Points)
Replied 27 October 2016
Its the gross taxable income minus all the deductions availed. or NET TAXABLE INCOME. After reducing the taxable income from all the deductions under chapter VI A, if its equal to or less than 5 lakhs, then the resident individual assessee can get rebate in tax maximum upto Rs. 5000/-
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 27 October 2016
Mukesh Kumar
(Accounts Manager)
(1466 Points)
Replied 27 October 2016
TAXABLE INCOME UNDER:- INCOME FROM ALL SOURIES ( –) ALL EXEMPT INCOME (–)ALL DEDUCTION = Taxable income
REBATE U/S 87A EQUAL TO 10% OF TAXBLE INCOME BUT MAX. REBATE IS RS 5000
AGE LIMIT FOR AVAIL: YOU AGE MUST BE UNDER 60 YEAR
Vaishnavi Ganesh
(Chartered Accountant)
(861 Points)
Replied 27 October 2016
Where your income for computation of tax (I.e after deductions) is less that rs.500000 you are eligible for rebate under section 87a of rs.5000 or tax payable whichever Is lesser.
Say if the tax so computed before rebate is less than 5000rs - such tax payable so computed will be rebate.
This is applicable from the assessment year 2017-18 onwards.
For any AY prior to that - above is to be read substituting rs.2000 in place of rs.5000
akash sharma
(Student CA Final )
(27 Points)
Replied 27 October 2016
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