Sec.87 a
This query is : Resolved
29 January 2015
sec.87 A is applicable on Annual gross total or Taxable income.
29 January 2015
Section 87A is a Tax Rebate on total Tax payable by an Assessee. Your question either on Annual Gross Total or Taxable Income dont make any sense
29 January 2015
however such tax is deductible on tax calculated before allowing deductions under chapter VIA
29 January 2015
Hi
It is to be calculated on Net Taxable income.
Thanks!!
It is to be calculated on Net Taxable income.
Thanks!!
29 January 2015
In general cases you are correct Mr. Vaibhav but where Employee is entitled for Tax Rebates under Chapter VIII than the given below concept would be applicable
However if any rebate is there due to relief of Tax under section 88 such rebate would be given after rebate of section 87A.
However if any rebate is there due to relief of Tax under section 88 such rebate would be given after rebate of section 87A.
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29 January 2015
Pl refer:
http://abcaus.in/incometax/rebatesection87Aay201415.html
http://abcaus.in/articles/income-tax/gross-total-income.html
Thanks!!
http://abcaus.in/incometax/rebatesection87Aay201415.html
http://abcaus.in/articles/income-tax/gross-total-income.html
Thanks!!
29 January 2015
Also please note you can claim deduction under Ch VIA, this deduction is available before deduction of Ch VIII.
Mr. Singla mentioned Ch. VIA instead of Ch. VIII
Thanks!!
Mr. Singla mentioned Ch. VIA instead of Ch. VIII
Thanks!!
29 January 2015
agreed with all views of vaibhav.......
29 January 2015
Sir I know About Chapter VIA Deductions can be claimed before getting Rebate u/s 87A.
If I am mentioning rebate surely I am talking about Chapter VIII.
I Take an Example
Case I
If a person has Gross Total Income 600000
Deductions under Chapter VIA 120000
Net Taxable Income 480000
Tax on Net Taxable Income =230000*.103= Rs. 23690/-
Rebate u/s 87A = Rs.2000/-
Net Tax payable = 21690/-
Case II
Out of Gross Total Income of Rs. 600000 If a person has Salary in Arrears for F.Y 2012-13 of Rs.100000/-
He is entitled for Relief u/s 89 for 100000/-.
Net taxable Income would be taken as 600000 not 500000 after deducting relief u/s 89 for claiming Rebate of Rs. 2000/-.
The Object behind it to give the assessee maximum benefit of 87A.Any Income tax Relief cannot affect Section 87A.
Its not a matter of win or loose but the matter of right concept.
Plz read section 87A carefully to interpret it correctly
If I am mentioning rebate surely I am talking about Chapter VIII.
I Take an Example
Case I
If a person has Gross Total Income 600000
Deductions under Chapter VIA 120000
Net Taxable Income 480000
Tax on Net Taxable Income =230000*.103= Rs. 23690/-
Rebate u/s 87A = Rs.2000/-
Net Tax payable = 21690/-
Case II
Out of Gross Total Income of Rs. 600000 If a person has Salary in Arrears for F.Y 2012-13 of Rs.100000/-
He is entitled for Relief u/s 89 for 100000/-.
Net taxable Income would be taken as 600000 not 500000 after deducting relief u/s 89 for claiming Rebate of Rs. 2000/-.
The Object behind it to give the assessee maximum benefit of 87A.Any Income tax Relief cannot affect Section 87A.
Its not a matter of win or loose but the matter of right concept.
Plz read section 87A carefully to interpret it correctly
29 January 2015
Dear Naveen, You are getting me wrong, i am correcting your statement on post # 3 where you have mentioned before allowing deduction under Ch. VI-A, but it should be Ch. VIII. This could be misguiding on single reading to other members.
I did not mentioned anywhere that your concept is wrong & also one should not doubt concept of other member too unless you know that person personally.
Your concept is very good & i appreciate the same & also acknowledged it by passing thanks to post #5.
I did not mentioned anywhere that your concept is wrong & also one should not doubt concept of other member too unless you know that person personally.
Your concept is very good & i appreciate the same & also acknowledged it by passing thanks to post #5.
30 January 2015
Right Vaibhav Sir,
While writing we should be specific or write it in a simple manner.
Agreed. Appreciate your thoughts
While writing we should be specific or write it in a simple manner.
Agreed. Appreciate your thoughts
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