Allowance of rebate u/s 87a for tds

Ankan Mohanty (INTERNAL AUDITOR) (97 Points)

19 March 2014  


I'm facing an ambiguity regarding deduction of tax at source u/s 192 for the employees. The thing is our company has taken a stand to deduct tax at source before allowing rebate u/s 87A. However, many employees are arguing that we should take into consideration the rebate u/s 87A.

I have read many articles and also the circular no.8/2013 dtd 10th October, 2013 issued by CBDT,relating to INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2013-14 UNDER SECTION 192 OF THE INCOME-TAX ACT,1961 nowhere in that circular it has been mentioned regarding the consideration of rebate u/s 87A.

Please Advise in what measures should be adopted.