Sec 87a
This query is : Resolved
ravi paliwal
(Querist)
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
(Expert)
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.
OM SAI SRI SAI JAI JAI SAI
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.
OM SAI SRI SAI JAI JAI SAI
Dhirajlal Rambhia
(Expert)
04 October 2021
Yes, after all the available deduction, i.e. if net taxable amount is below 5 lakhs, then the rebate can be availed.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- MSME disclosure and disallowance
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
