HW REBATE APPLICABLE IN INCOME TAX
0
0
Answer Now
Comment
Report
4
Answers
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
Important Note โ Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures โ online & in Pen Drive/ DVD โ at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below โ
For any questions Request A Call Back
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.
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)