Tax rebate or 5 lac exemption?


Sanjay Gupta   01 February 2019

Sanjay Gupta

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Is it tax rebate available up to income Rs. 5 lakhs or income upto Rs. 5 lakhs tax exempted for all even though taxable income exceeds Rs. 5 lakhs

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Dhirajlal Rambhia (KVO Merau Kutchh)     01 February 2019

Dhirajlal Rambhia
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tax rebate available up to TAXABLE income Rs. 5 lakhs
 

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v k s supraja (intermediate)     01 February 2019

v k s supraja
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Rebate under 87A applies to only such persons whose total income is less than or equal to 5 lakhs ... (i.e., no tax liability arises up to 5 lakhs) 

Moreover if total income exceeds 5lakhs then there is no concept if rebate under 87A

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Nitesh bind (Student CA Final )     02 February 2019

Nitesh bind
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Agreed with Supraja and Dhirajlal Sir.

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happyvalley blooms   02 February 2019

happyvalley blooms

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If some one has income of just 5 lakhs gross income (retired / no property income/no stocks/bonds etc - only income is FD interest) , the 5 lakh IT threshhold is automatic (like 2.5 lakhs now) or only with rebates which we have to claim under sub sections like 87C investments ?

Prakash Jindal (Accounts Manager)     02 February 2019

Prakash Jindal
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No, it's reabte and Slab has not been changed. Which means if you are earning even 3,00,000 still have to file return and then claim the Rebate u/s 87A.

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S ELAVARASI (ACCOUNTANT)     02 February 2019

S ELAVARASI
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Is its to Total income or Taxable  income...?

 

If my total income (receipts) Rs 10 lakhs. After prepare p&l my taxable income Rs. 5 lakhs. then can i avail the benifit?

Suryakant N Kotigiri (Asst. Manager Finance)     04 February 2019

Suryakant N Kotigiri
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Eligibility to Claim Rebate Under Section 87A FY 2019-20 (AY 2020-21)

You can claim tax rebate under this provision if you meet the following conditions:

  1. You must be a RESIDENT INDIVIDUAL; and
  2. Your Total Income, less Deductions, (under Section 80) is equal to or less than Rs 5 lakhs.
  3. The rebate is limited to Rs 12,500. This means that if the total tax payable is lower than Rs 12,500, then that amount will be the rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (4%).

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Dhirajlal Rambhia (KVO Merau Kutchh)     04 February 2019

Dhirajlal Rambhia
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Originally posted by : S ELAVARASI
Is its to Total income or Taxable  income...?

 

If my total income (receipts) Rs 10 lakhs. After prepare p&l my taxable income Rs. 5 lakhs. then can i avail the benifit?

 

Net Taxable income after all deductions.... but only  in case of individual/proprietorship firm ....

Vignesh Prabhu (Student)     05 February 2019

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If your Net taxable income doesn't exceed Rs.5 lakhs, then you will be eligible for a rebate upto 100% of your tax payable under section 87A. However if your Net taxable income EXCEEDS Rs.5 lakhs then rate of income tax shall apply as before.


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