How to calucate tax rebate u/s 87a?

your rebate will be 6000

Hi, I find Sec 87A very confusing.

My annual CTC is below 5 lpa so I asked my employer to give me a rebate of 2000 rupees under section 87A. My employer gave me the rebate.

Now, I find that even though my salary is less than 5 lpa but my income from FD interest and stock market crosses 5 lpa.

Do I have to pay 2000 rupees tax before I e-file my returns ?

Any response will be appreciated.

Thank you.

Hello everyone..

I have a query regarding section 87 A
 

Business income = 218920

Agricultural Income= 356510

Total= 575430

Now, Shall I calculate Rebate on 218920 or first I calculate tax on whole 575430 and then I claim Rebate ??
As 218920 is above the exemption limit of Rs. 200000, so tax will be levied on 575430
Please advise, Its urgent.

Originally posted by : veny gupta
	Hello everyone.. I have a query regarding section 87 A   Business income = 218920 Agricultural Income= 356510 Total= 575430 Now, Shall I calculate Rebate on 218920 or first I calculate tax on whole 575430 and then I claim Rebate ?? As 218920 is above the exemption limit of Rs. 200000, so tax will be levied on 575430 Please advise, Its urgent.

agriculture income is not taxed but is considered for application of tax rate.  Plus the rebate of Rs 2000 shall still be available under 87A

ok thanx :)