Dear Friends
Mr. X has only lottery income of Rs. 1,00,000 in Previous Year 15-16.
His income tax 30% of 100000 = Rs. 30000
Will he get rebate of Rs. 2000 for PY 15-16?
Regards
45 Replies
JOEY TRIBIONI
(Article)
(200 Points)
Replied 04 March 2016
No he cant income shold be lower than 500000
Pallavi Dashore
(student)
(22 Points)
Replied 04 March 2016
Yes he can get rebate us 87A even if it is casual income
sneha singhania
(Proprietor)
(28 Points)
Replied 04 March 2016
He can get rebate u/s 87a as 87 a is applicable when total income does not exceed Rs.500000
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 04 March 2016
Agree with Sneha and Dyuthi , to claim relief u/s 87A TOTAL INCOME should not exceed 500000 ,
It does't matter to which source the income belong .
Relief will be available .
yaseen
(consultant)
(94 Points)
Replied 04 March 2016
Very good question by shivini.. but all of them ur answer is wrong... bcoz sec 87a is applicable to the individual tax payer who are in the 10%tax slab. 87a not applicable to those tax payer whose income is charged under the flat rate... got ittttttttttttttttttt....
CA MANISH SAXENA
(Partner)
(561 Points)
Replied 04 March 2016
Agree with Yaseen!!!
Lottory income is not eligible to 87A.
this will be taxed by flat 30%.
Thanks!
Ankit Taprania
(CA FINAL )
(542 Points)
Replied 04 March 2016
WHY THIS ISSUE IS GETTING TO BE A BURMING ISSUE ?
agree with the part that Lottory income is taxed @ 30% BUT does'nt with that part 87A is not available.
When lottory ORGANISOR pay you money he will deduct TDS @ 30% BUT when you file you return , if your total income is below 500001 , you will without any doubt be able to claim 87A relief . and consequently claim refund .
87A , IT NOWHERE prohibit that it is not available on lottory income , moreover it doest'nt say that 87a not applicable to those tax payer whose income is charged under the flat rate OR NON FLAT RATE .
BARE ACT : WHOLE 87A
"An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.] "
The only eligibility criteria for 87A is that your total income ( including lottory income ) should not exceed 5lakh .
example :
1 lottory income 1,00,000 ( tds 30000)
2. other income 2,10,000
SOL:
total income = 3,10,000
Tax on lottory income = 30,000
tax on other income = NIL
Total tax 30,000
relief u/ 87a 2,000 (since your TI is below 5 LAKH)
28,000
CESS @ 3% 840
28,840
REFUND (30,000 - 28,840) 1,160
babugr
(dgm)
(509 Points)
Replied 04 March 2016
How can we claim, it is a rebate provided automatically in the sheet if TI is less than or equivalent to Rs. 500000.
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