Income tax slab

This query is : Resolved

Nilraj (Querist)
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27 June 2013 Dear Sir,

Suppose a persons total annual Income is Rs. 5,50,000/- He gets Tax Deduction of Rs. 1,00,000/- Under 80C. So his Net Taxable Income is Rs. 4,50,000/- Now how will be the tax calculation as per the Tax Slabs for the A.Y 2014-15. Is he eligible for Rs. 2000/- Tax Credit??? Pls. answer in detail.

Thanking you in Advance.

kunal

kunal (Expert)
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27 June 2013 no he's not eligible..
Rs. 2,000 credit is given on Gross total Income Not on Net taxable income

Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 Dis agree with Mr.kunal and you can avail this benifit...

refer my explanation as below

1)Yes..it is applicable for A.Y.2014-15

2)In recent budget 2013 a new section 87A was introduced it gives Rebate of Rs.2000/- which is a small relief to tax payers whose income is up to 5 lakhs.

3)Yes..you can avail this benifit. Because the 'total income' after deducting all deductions available under Chapter VIA from ' Gross total income not exceeded 5 lakhs..

Please refer below post of mine will clarify some more doubts in this regard

https://www.caclubindia.com/forum/new-income-tax-rebate-rs-2000-sec-87a-241553.asp#.UUlszRwZ115

Thanks & regards
Ganesh babu k

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Ganeshbabu K

Ganeshbabu K (Expert)
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27 June 2013 Dear author for your reference i have reproduced here section 87A which was introduced in Finance act 2013

Please refer

Rebate of income-tax in case of certain individuals.

Section 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.

Thanks & regards
Ganesh babu k