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Huf rebate u/s 87a

NIKUNJ SHAH (article) (75 Points)

10 July 2014

Is rebate U/s 87 A applicable to huf if net taxable income is less than 500000.

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5 Replies

Rohit Gupta (Audit Executive) (271 Points)
Replied 10 July 2014

Dear Nikunj

As per Section 87A

An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.

So the deduction is available only in case of individual not to HUF.

Regards

Rohit Gupta

RHT1203 @ gmail.com

Kannan Murali (ARTICLE ASSISTANT) (52 Points)
Replied 10 July 2014

Section 87A is not applicable to HUF , u/s 87A Rs.2,000 only applicable for resident individuals, whoses net taxable income does not exceed 5,00,000.(not being a super senior citizen, coz basic exemption limit is 5,00,000)