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.
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
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.
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