87a effect on tds

Mihir (Wealth Manager) (5293 Points)

07 February 2014  

Section 87A states that anybody whose income is less 5 lacs may claim rebate of Rs. 2,000/-.

 

Can the AO send a short-deduction notice u/s 200A to the employer for deducting less TDS from the employee because the employee shall claim rebate u/s 87A in his/her ITR ? 

Is there a provision in form 16 to show that the employee is eligible to claim rebate u/s 87A and therefore, TDS of Rs. 2,000/- has been less deducted?