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87a rebate

Sridhar (Student CMA) (77 Points)

01 February 2014

Dear frnds and experts, Please clarify me abt Tax rebate of Rs.2000/-. To whom al it is applicable ? Suppose a person whose taxable salary income after deductions u/s 10 and u/s 80 is Rs.4,92,000/- can I deduct Rs.2000 from the tax amount ? Thanks in advance.

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3 Replies

Saleem Abdul (CA) (397 Points)
Replied 01 February 2014

Hi Sridhar

As per Sec.87A An assessee, being an individual resident in India, whose total income does not exceed 500,000/-, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter VIII) on his total income with which he is chargeable for any assessment year, of an amount equal to 100% of such income-tax or an amount of 2000/-, whichever is less.

As you mentioned 2000/- deduction from tax amount is allowed before allowing any deduction under chapter VIII

however this provision will be effective from AY 2014-15.