From A.Y 2014-2015 Onwards, Every Taxpayers should aware of this matter..
What is Rebate u/s 87A ?? Details given in a Simple Language, please go through that, bcoz Every Individual Must AWARE OF THIS REBATE & from a.y 2014-2015 , Huge tax payers are expected to benefit .
1)This rebate is available ONLY to an ‘INDIVIDUAL’ tax payer, resident in India.
2)This Rebate is available to both Male and Female assesses.
3)This new section has been inserted with effect from the 1st April, 2014 i.e, it is applicable for Assessment Year 2014-15 onwards.
4)This benefit is available only if Income of An Individual doesn't exceed Rs. 5 Lakhs.
5)Tax Rebate u/s 87A of Rs. 2,000/- is also available to a senior citizen, if the total income is Rs. 5 Lakh or less.
6)One thing you must remember, that it’s not a deduction under Chapter VIA,
but this is a Rebate of the Income Tax Act, 1961 which is deducted from the income-tax payable.
7)This rebate is restricted to the amount of income tax payable .
8)This Rebate u/s 87A is not available to a Non resident Persons. It is available only to resident of India.
Example :
1) Suppose Net Taxable income ( after deduction of Chapter via ) Rs ,225520/=
So ,, Normal tax payable Rs 2,552 - Rs 2000 ( rebate u/s 87A ) = Rs 552 + 17 ( 3 % OF 552, AS EC & SHEC ) = Rs 569/=> ( self assessment tax ) ..
Thanks.
CAclubindia
