As per Section 87A of Income tax Act,1961
any individual resident and ordinary resident having taxable income below Rs. 5,00,000.00 for the any assessment year, then a rebate is available of Rs 2000/- or Tax liability, whichever is lower.
Case 1: A resident Ram 89 years old having taxable income of Rs 4,70,000.00 in A.Y. 2015-16. Is the rebate is allowed?
Sol: No, Rebate is not allowed because the assesse's income is under the slabe rate so rebate's concept is not applicable.
Case 2: A non resident peter 32 years old having taxable income of Rs 4,50,000.00 in A.Y. 2015-16. Is the rebate is allowed?
Sol: No, rebate is not allowed because the assesse is non resident. This provision is applicable to only resident individual.
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