FOR A.Y 2015-2016, REBATE U/S 87A APPLICABLE OR NOT ?
I am not sure about it as far as General Budget 2014 is concerned ,that's why i am asking over here .
Regards.
11 Replies
Kishor Bhat
(CA final CS executive (from Bangalore))
(1881 Points)
Replied 16 July 2014
It stil there..u can claim 2k rebate.
VIKAS BHATNAGAR
(CA,CS)
(87 Points)
Replied 16 July 2014
There is nothing in the Budget to discontinue the section 87A hence you can claim deduction.
PALASH
(Nothing)
(2000 Points)
Replied 16 July 2014
Friends,,
So for A.Y 2015-2016, Ultimate basic exemption limit raised to Rs 270000/= ( RS 250000+20000 ), Is it true ???
Harshit Kumar Bansal
(Chartered Accountant)
(47 Points)
Replied 17 July 2014
yes 87A rebate is also available for ay 2015-16 . yau can claim it.
Anand Eriwal
(Chief Manager - Taxation)
(92 Points)
Replied 17 July 2014
Yes the Rebate u/s 87A is still available... since that section is not yet withdrawn by the Finance Bill ( Subject to assent of President)
PALASH
(Nothing)
(2000 Points)
Replied 17 July 2014
Friends,,
So, if Rebate 87A is still available then Ultimate basic exemption limit should have been raised to Rs 270000/= ( RS 250000+20000 for 87A ) for a.y 2015-2016.
Is it true ??
Regards
PALASH
(Nothing)
(2000 Points)
Replied 17 July 2014
Please give me a proper example regarding this matter as far as your explanation is concerned, ok , bcoz i m really confused about it .
Regards.
PALASH
(Nothing)
(2000 Points)
Replied 18 July 2014
Thanks a lot but , One mistake i.e, Net Tax payable should be ( rs 3000+ 3% of Rs 3000) equals to rs 90/= 3090 ( NOT RS 3000/= ) ok, bcoz without taking into consideration of 3% Education cess , you can't say Net TAX PAYABLE , any way thanks a lot for your explanation.
and one more thing i want to say that another aspect of tax calculation ( other than LTCG/STCG ) Suppose, Net taxable income ( AFTER CHAPTER VIA ) Of RS 280000, then ( 280000-250000) = Rs 30000 , so 10% of Rs 30000 equals to Rs 3000- Rs 2000 for 87A , THEREFORE Net Tax payable ( 3000-2000) =1000 + 3% of 1000 = 1030 .
Both the aspects are same , but from this angle i told that ultimate basic exemption limit raised to Rs 270000 for a.y 2015-2016.
Thanks a lot to all of you ..
Anu Jain
(Accounts Executive)
(21 Points)
Replied 01 May 2015
Dear Sir,
Slab and rebate are totally different. Rebate of 2000/- does not mean increase in slab of 20000/-. This rebate is provided to those assessees whose TOTAL INCOME is below 500000/-. After tax calculation...say 3000/- is computed at total income, Then rebate of 2000/- is provided on it.
i.e tax payable is 3000-2000=1000.
Thank you
Anand Eriwal
(Chief Manager - Taxation)
(92 Points)
Replied 13 July 2015
Slab will not increase because that is your income based on which tax is payable.
On other hand rebate is reduction of your taxes, so your tax is reduced....
so both are different.... so limit would not increase... I hope you understood....
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