Newly introduced section 87a of income tax act
This query is : Resolved
08 March 2014
Hello,
Under section 87A of Income tax act, rebate of Rs. 2000 is allowed to the person having net income of 5 lakh or < 5 lakh.
Whether this rebate is also allowed against Education cess and Higher education cess ?
Whether education cess is required to pay, even though, income is < 5 lakh ?
Thanks in advance.
Under section 87A of Income tax act, rebate of Rs. 2000 is allowed to the person having net income of 5 lakh or < 5 lakh.
Whether this rebate is also allowed against Education cess and Higher education cess ?
Whether education cess is required to pay, even though, income is < 5 lakh ?
Thanks in advance.
08 March 2014
Cess is caluculated on tax
.
87A will be reduced from tax
.
.
So assume actual tax liability 4k after availing 2k u haveto pay tax of 2k and cess on 2k
.
If tax is nil cess also nil
.
87A will be reduced from tax
.
.
So assume actual tax liability 4k after availing 2k u haveto pay tax of 2k and cess on 2k
.
If tax is nil cess also nil
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