Rebate u/s 87a of rs. 2000

This query is : Resolved

Preetam Singh Shekhawat (Querist)
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30 January 2014 Dear Sir,

I just want to clear on rebate u/s 87A of the Income Tax act that is inserted in new budget and applicable from assessment year 2014-15.

1. Whether as an employer, I am to consider the rebate of Rs. 2000 before deducting the TDS?
2. Whether can i get a refund of this rebate?
3. If an employer deduct whole TDS (without considering rebate u/s 87A) and employee doesnot have further tax liability and then the employee claim rebate in his individual tax return; will it be refunded to him?
4. The rebate is on total income after all kind of deduction or into total tax liability after all the deduction?

Plese clarify this matter as early as possibel. I am having a vast confusion on this?

Thanks

AVTAR SINGH

AVTAR SINGH (Expert)
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30 January 2014 1. Yes the employer has to give rebate u/s 87A.
2. Refund can be claimed by any person if more tax has been deducted/deposited.
3. Yes, the employee can claim refund in case of excess TDS.
4. The rebate of Rs.2000 will be deducted from tax before charging cess.