Rebate of rs.2000

Thats right. Before availing deduction under chapter VI.

Originally posted by : Mihir
	Thats right. Before availing deduction under chapter VI.

No, it doesn't mean that!!!
 

Total income is caluculated after deducting all deductions under chapter VIA

So if your net taxable income is not more than 5 lakhsyou can avail rebated u/s 87A of income tax act

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kindly refer below for more quires in 87A

/forum/new-income-tax-rebate-rs-2000-sec-87a-241553.asp#.UqxQu9IW1Gi

Thanks for correcting me.

This tax rebate is available to those whose gross income minus deductions or net income is less than Rs. 5 lacs, then tax payable on 5 lacs or less shall be reduced by Rs. 2000/-. If tax on above comes to let say 25K and due to this rebate, you are liable to pay only 23K. This rebate is not available to NRI.

Dear Ganeshbabu sir,

Actually i already read the article aforesaid by you. After reading that concept i got a doubt. I am clear that rebate is allowed to an resident individual if his/her total income doesn't exceed 500k. But the only doubt is whether the rebate of Rs.2000 is allowed on the tax calculated on the gross total income or net income, as you said in your article as follows---

As per new section 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.”

In the above highlighed sentence, the words "under this chapter" has been used. That means income tax calculated on the income before allowing deductions under chapter-VIA or other.

I hope you understood my doubt. Kindly please clarify as early as possible

Dear Satya

I understand your doubt is regarding the wording "as computed before allowing the deductions under this Chapter" in brackets.

Kindy note that the Chapter referred above is "Chapter VIII - Rebates & Reliefs" of the Act which contains the relevant Section 87A and NOT "Chapter VI-A - Deductions to be made in computing the total income". 

Regards

Ajay

@ satya kindly refer to ajay sir explanation

Now i got the point and i am clear. Thank you one and all