Sec 87a

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ravi paliwal (Querist)
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08 March 2014 in section 87a there is rebate of 2000/- on income tax if net salary for fy 2013-14 is upto 5 lac. so what is component of net salar? whether it is salary after deduction of saving under 80c? plz answer

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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08 March 2014 The relief u/s 87A available for the individual assessees whose net total income having below Rs.5 lacs for the F.Y 2013-14 not for the Net salary income.

Net salary income means considers only taxable income from Salary But Net Total income means considers all the income from all the five heads of the taxable income and deductions u/s 80C or any other deductions, so please find of all find the difference between Net Salary Income and Net Total income.

However based on your query i assuming you are the salaried employee and you didn't have any other heads of income except income from Salary. Is my view is correct, Then your Net Income taxable salary income shall be your gross total income and from this gross total income deduct all your Chapter VIA savings deductions(U/s80C,80TTA,80D,80E etc...) the balance shall be your net total income.

Net Taxable Salary Income = Gross salary received/receivable- Prof.tax-HRA(if any)-Conveyance allowances- if any other allowances which are exempted to tax. This is called taxable Salary Income

Since you didn't have any other heads of income above income shall be your Gross total Income.

Net Taxable Total Income = Gross total Income - Chapter VIA Deductions.

If this Net taxable Total Income is Rs.5 lacs or below for the F.Y 2013-14 or A.Y 2014-15 then you shall get the benefit of tax rebate of Rs.2000 U/S 87A from your tax payment liability.

Still if you have any doubt and required clarification please ask your query.

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