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INCOME TAX S-87-A REBATE ALLOWED TO HUF OR NOT

Om Goyal (445 Points)

28 June 2019

WHETHER S-87-A REBATE ALLOWED TO HUF OR NOT UNDER INCOME TAX.FOR AY 19-20 ITR - 2 AS HUF NOT MENTIONED & ONLY Individual MENTIOND IN S-87A

WHEN I FILLED UP THE ITR - 2 FOR HUF FOR 4 LAKHS INT. INCOME & CLICKED CALCULATE TAX.

IT CALCULATED TAX BUT NOT SHOWN EQUAL AMOUNT OF REBATE 87-A MAKING TAX PAYBLE NIL

CAN EXPERT MAY PL CLARIFY

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5 Replies

MUHAMMED MOINUDDIN (100 Points)
Replied 29 June 2019

87a is available to HUF

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Om Goyal (445 Points)
Replied 30 June 2019

sir pls Recheck this as

when i filled up itr-2 for HUF. my tax was calculated & shown Rs 7500+300 as tax payble.

Hence i checked s 87-A in Income tax act which states Individual & it does not write & HUF.

further i checked s 80-C & It States any Individual & HUF who invests ----- up to 1.50 lakh is entitled for 80- C Dedn.

any expert may play clarify my problem.pl

Suresh Thiyagarajan (Student) (3986 Points)
Replied 30 June 2019

1. As per sec 87A, rebate will be available to a resident individual to the extent of Rs. 2,500 or the amount of tax payable on his income provided his Total income( after deduction) does not exceed Rs. 3,50,000.
2. Sec 87A had specifically used the words Individual and as well as resident. So, the interpretation should be it is available only to the resident individual.
3. In your case, Rebate u/s 87A for HUF should not be available.
Please correct me if the above interpretation has an alternative view.

Om Goyal (445 Points)
Replied 30 June 2019

sir sorry

I gave income figure Wrongly by Mistake as 4 lakh. sorry please excuse me. i was Mistaken with figure of other case

HUF income is Actually 2.90 Lakhs & with Figure of 2.90 lakhs, & After the Calculate Tax Command,
Still tax is Shown as 2000-+80 = 2080- After allowing Basic 2.5 lakh exemption.

HENCE NO REBATE OF Rs 2080- In 87-A REBATE Col Appears.
Final Tax Payments Shown as Rs 2080-.

i think because Ind. word used & NOT HUF word used in 87-A REBATE i.e why ,it is not allowed.
However In all other Dedn. cases IND. & HUF words used. please Recheck minutely, Sir

RES. used is that not allowed to Nri/Nor

please provide SOLUTION to above whether i m Wrong Somewhere.

thanks in advance for the Trouble.