How to calucate tax rebate u/s 87a?

Page no : 3

Nikhil Kaushik (Fellow CA) (85569 Points)
Replied 28 February 2014

Dear Parv, if your tax liability before providing for rebate under 87A is Rs 4000 then yse, you tax refund shall be Rs 6000.

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CA SUKSHAM ARORA (CA) (569 Points)
Replied 01 March 2014

your rebate will be 6000

Nikhil Kaushik (Fellow CA) (85569 Points)
Replied 01 March 2014

@ suksham...i believe you mean refund not rebate..

Parv Dhuria (CA) (28 Points)
Replied 02 March 2014

Thanks I got my query solved.

Mark (Analyst) (44 Points)
Replied 05 April 2014

Hi, I find Sec 87A very confusing.

My annual CTC is below 5 lpa so I asked my employer to give me a rebate of 2000 rupees under section 87A. My employer gave me the rebate.

Now, I find that even though my salary is less than 5 lpa but my income from FD interest and stock market crosses 5 lpa.

Do I have to pay 2000 rupees tax before I e-file my returns ?

Any response will be appreciated.

Thank you.

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veny gupta (CA FINAL STUDENT) (49 Points)
Replied 06 June 2014

Hello everyone..

I have a query regarding section 87 A

Business income = 218920

Agricultural Income= 356510

Total= 575430

Now, Shall I calculate Rebate on 218920 or first I calculate tax on whole 575430 and then I claim Rebate ??
As 218920 is above the exemption limit of Rs. 200000, so tax will be levied on 575430
Please advise, Its urgent.

Nikhil Kaushik (Fellow CA) (85569 Points)
Replied 06 June 2014

Originally posted by : veny gupta
	Hello everyone.. I have a query regarding section 87 A Business income = 218920 Agricultural Income= 356510 Total= 575430 Now, Shall I calculate Rebate on 218920 or first I calculate tax on whole 575430 and then I claim Rebate ?? As 218920 is above the exemption limit of Rs. 200000, so tax will be levied on 575430 Please advise, Its urgent.