18 January 2014
which amount to be considered while calculating benefit of u/s 87. Either before allowing any deduction or after dedcting benefit of 80c and 80d
For claiming tax credit of Rs.2,000/- U/s. 87A, Net taxable income after allowing deduction under section 80C to 80U will be considered.
In this regard i would like to draw your attention towards conditions for rebate:
1) Taxpayer is a resident individual (he may be ordinary or not ordinary resident). 2) His total income or net income or taxable income (i.e. gross total income minus deductions under section 80C to 88U) is Rs. 5 Lakhs or Less.
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