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Rebate clain u/s 87a for ay 2014-15

22 May 2014

Hi,

Does any one know while filing return for AY 2014-15, how to claim the rebate eligible of Max Rs.2000 if total taxable income is less than Rs.5 Lac.?

I could not able to see section 87A in the ITR utility.

thanks

Manish

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7 Replies

HEM@NT G@RG (ARTICLE ASSISTANT) (313 Points)
Replied 22 May 2014

Hello Manish,

Budget 2013 introduced an Income Tax Rebate of Rs. 2,000 for people earning income below Rs. 5 Lakh applicable from Assessment year 2014-15. It is important to note here that Section 87A does not impact the Income Tax Slabs as Rs 2,000 is to be subtracted from the Total Tax Payable and not from the Total Income of an Individual.

As Section 87A provides for Income Tax Rebate, the taxpayer will first compute the Total Tax Payable and then reduce Rs. 2,000 from this Tax payable provided his Total Income is less than Rs. 5 Lakh. If his Total Income is more than Rs. 5 Lakh, the taxpayer won’t be able to claim income tax rebate under Section 87A.

The Net Taxable Income of Rs. 5 Lakh is the net of Income and losses under all heads

Deductions from Section 80C to Section 80U under Chapter VI-A would also be allowed and the resultant figure should be less than Rs. 5 Lakh for an individual to claim income tax rebate of Rs. 2,000 under Section 87A.

Applicability:
Rebate under Section 87A is
• only available to Resident Individuals
• The total rebate allowed under section 87A would be Rs.2,000 or the total tax payable (whichever is less)
• Income Tax Rebate of Rs. 2000 is allowed before the levy of Education Cess and SHEC
• There is no benefit of this Rebate to Super-Senior Citizens i.e. Individuals above 80 years of age as their Income up to Rs 5 Lakh is already exempted from the levy of Income Tax

praveen (Chartered Accountant) (6971 Points)
Replied 22 May 2014

Hmmm. Havent seen the excel utility but it the schema provided by the department deduction u/s 87A is provided.

The softwares are automatically providing for the deduction

capraveenmr.wordpress.com

CMA Manish Gupta (CMA) (26 Points)
Replied 22 May 2014

Hi Hemant,

Scheme of 87A, I already know.

I just want to know about option in ITR utility. There is know scope of deduction of 2000 (Max. limit) u/s 87A in utility.

Deepak Gupta (CA Student) (15922 Points)
Replied 22 May 2014

Sec. 87A rebate column is available in the java based utilities.

srinivasan (service) (898 Points)
Replied 23 May 2014

Pl see the PDF of itr available in the income tax web site for at 2014-15 below the tax payable in part b srl no 2 seeks the rebate u/s 87A in which you shall disclose the same