Ambiguity in interpretation of rebate/relief rs. 2000 as per

Ravindra K. Banthia (Others) (26 Points)

28 March 2014  

Sorry if this post is akin to one already answered. I need an answer fast, or the wrong amount might get deducted as TDS this month.


I am a salaried professional (in a college).


My gross income =  4,89,364

Total Deduction under 80c etc = 79,298

Net Income =  4,10,066

STD Deduction = 2,00,000

Taxable Income = 2,10,066

Final Tax @ 10 % with 3% cess = 21,637


My employer (the college) insists on collecting this whole amount from me.


I wish to know whether the rebate/relief Rs. 2000 as per Section 87A has to be given by me as TDS?


My employer insists that the above rebate of Rs. 2000 can only be obtained by me as a refund when I file my income Tax return.


Another quick one: Is the tax calculation of a salaried person based on Gross Income or Net Income as far as the slab is concerned?


So if my Gross Income is Rs 5,00,001 but my Net Income after allowing for deductions under 80c etc is Rs 4,00,001, which slab do I belong to?

ii. Where the total income exceeds Rs. 2,00,000/- but does not exceed Rs. 5,00,000/-.

iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.


Thank you.