Rebate 87a

No he cant income shold be lower than 500000

Agree with Sneha and Dyuthi , to claim relief u/s 87A TOTAL INCOME should not exceed 500000 ,

It does't matter to which source the income belong . 

Relief will be available .

Agree with Yaseen!!!

Lottory income is not eligible to 87A.

this will be taxed by flat 30%.

Thanks!

WHY THIS ISSUE IS GETTING TO BE A BURMING ISSUE ?

agree with the part that Lottory income is taxed @ 30% BUT does'nt with that part 87A is not available.

When lottory ORGANISOR pay you money he will deduct TDS @ 30% BUT when you file you return , if your total income is below 500001 , you will without any doubt be able to claim 87A relief . and consequently claim refund  .

  87A , IT NOWHERE prohibit that it is not available on lottory income , moreover it doest'nt say that 87a not applicable to those tax payer whose income is charged under the flat rate OR NON FLAT RATE .
 

BARE ACT : WHOLE 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.] "

The only eligibility criteria for 87A is that your total income ( including lottory income ) should not exceed  5lakh .

example :

1 lottory income 1,00,000 ( tds 30000)

2. other income 2,10,000

SOL:

total income                =       3,10,000

 Tax on lottory income  =        30,000

tax on other income      =          NIL        

Total tax                                 30,000

relief u/ 87a                         2,000  (since your TI is below 5 LAKH)

                                             28,000

CESS @ 3%                              840

                                             28,840

REFUND (30,000 - 28,840)     1,160

why not ???

How can we claim, it is a rebate provided automatically in the sheet if TI is less than or equivalent to Rs. 500000.