rashmi
asked
HW REBATE APPLICABLE IN INCOME TAX
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narahari
answered
Rebate U/S 87A -Applicable Only To Resident Individuals
Condition:- TOTAL INCOME Must be below 5,00,000
Availability Of Rebate U/S 87A: -The Least Of the Following Is Rebate U/S 87A
i) 100% of Tax there on (i.e Before Charging Edu.cess)
ii) 2000/-
Example: Suppose If an Resident Individual of below 60 years, has an TOTAL INCOME Of 270000,(i.e after deducting under Chapter VI-A)
Reabte u/s 87A is Calculated as under:-
Tax there on (1) =2000(270000-250000)*10%
Less: Rebate u/s 87A
(2) lower of a) or b)=2000
a) 100%2000
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veeru
answered
Rebate benefit u/s 87A is available to Resident Individuals and not available to Non-Residents.
Rebate benefit u/s 87A is available only if Total Income does not exceed 5 lakh rupees in a Financial Year.
Rebate benefit u/s 87A is available to both male as well as female.
Rebate benefit u/s 87A is not applicable to a super senior citizen, since he is already fully exempted up to Rs. 5 lakh.
If the total tax payable by is less than Rs. 2000/-, rebate is restricted to total tax payable.
yeshwanth kumar
answered
Dear Rashmi,
Rebate U/S 87A -Applicable Only **To Resident Individuals**
Condition:- **TOTAL INCOME** Must be below **5,00,000**
Availability Of Rebate U/S 87A: -The Least Of the Following Is Rebate U/S 87A
i) 100% of Tax there on (i.e Before Charging Edu.cess)
ii) 2000/-
Example: Suppose If an **Resident Individual** of below 60 years, has an **TOTAL INCOME** Of 270000,(i.e after deducting under Chapter VI-A)
Reabte u/s 87A is Calculated as under:-
Tax there on (1) =2000(270000-250000)*10%
Less: Rebate u/s 87A
(2) lower of a) or b)=2000
a) 100%2000
b) 2000
Tax Payable (1)-(2) =Nil
Points to Be Noted:
a) This Section is Applicable Only For Resident Individuals below 80 Years, because above 80years theirs Basic Exemption Limit is 500000.
b) With the Effect OF Rebate U/S 87A , The assessee need not to Pay Tax if his **TOTAL INCOME** is 2700000( Though Exceeded **Basic Exemption Limit** of 250000)
