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Rebate u/s 87a

Manju Bashini Raghothaman (Article Assistant) (29 Points)

16 June 2014

Hi all,

is rebate u/s 87A is allowed in case of refund claims also?

example:

Tax payable is Rs.12000 before cess

TDS Rs.14000

What is the amount of refund one will get?

Thanks

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5 Replies

Kishor Bhat (CA final CS executive (from Bangalore)) (1881 Points)
Replied 16 June 2014

Question applicability of 87A arise only when u have obligation towards tax liability. So incase of refund case, yes u wil get refund.

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Manju Bashini Raghothaman (Article Assistant) (29 Points)
Replied 18 June 2014

what is the refund amount one will get is it Rs.2000(Tax - TDS ) or Rs.4000 (Tax - rebate -TDS )?

Pratik CA Final (Article Assitant) (102 Points)
Replied 18 June 2014

You have paid TDS of Rs. 14000 and your tax liability is Rs.12000 therefore your are entitled to get a refund of Rs.2000.
For the rebate of rs.2000,it has already been deducted from your taxable income thats why your TDS deducted was 14000 else it might have been 16000(The employer has considered the aforesaid provision).

ANANT (Service) (156 Points)
Replied 18 June 2014

Yes , you are awarded with the Relief u/s 87A. The reason is that for claiming relief under this section , you must have a tax liability and your Total Income must be Rs 5 Lacs or less. Your tax liability is calculates after considering this relief u/s 87A and from yhis net liability , the TDS is adjusted to claim refund or to pay tax.