Tax rebate 2000 eligible or not ?

522 views 4 replies

raja

owner

86 Points Joined May 2012

Dear Gurus,

I own a shopping complex let out to shops and residents.1) My gross rental Income is Rs 10,00,000. 2) 30 % statutory deuction Rs 3,00,000. 3) Interest paid to bank Rs 3,00,000/-. After deuction of point 2 and 3; Rs 4,00,000/-. is my taxable gross income. Home loan principal is 1,00,000 /- paid. My net income is 3,00,000/-. Tax Slab upto Rs 2,500,00 - NIL. Taxable Income is Rs 50,000/-. Tax payable is Rs 5,000 and Rebate Rs 2,000. Taxpayable is Rs 3,000/-.

Kindly help me if my above calcuation and understangings are wrong.

My Query

1) What is my gross Income ?

2) What is my net income ?

3) am i eligible for tax rebate ?

Gross Income above Rs 10.00 lakh is not eligible for LPG subsity and others.

Replies (4)

mohammad rasool baig

Management Consultant

1026 Points Joined August 2012

1. Your gross total income is income before claiming chapter VI deductions which means Rs 4 Lakhs

2. Your net total income is income after claiming chapter VI deductions which means Rs 3 lakhs

3. Since total income is less than 5 lakhs. then you can claim rebate U/s 87A

Vikas Gupta

Tax Executive

530 Points Joined July 2012

1. Your Gross Total Income = Rs. 500000/- arrived as under --

Net Rental Income 700000/- (Rs. 1000000 less Std Ded @ 30% Rs. 300000)

Less: Int. on House Loan u/s 24b 200000/- (being maximum limit u/s 24b)

Gross Total Income Rs. 500000/- (being Income from House Property)

2. Your Net Income = Rs. 400000/- (Rs. 500000 being GTI less Rs. 100000 being principal of H. loan u/s 80C)

3. Since your net taxable income is Rs. 400000 (being less than Rs. 500000/-), you are eligible for tax rebate of Rs. 2000/- u/s 87A.

Note: Pls check once that Rs. 2 lac exemption u/s 24b is for self occupied property.

Guest

If Interest paid on loan to buy rented property is Rs 3,00,000/-, the whole amount is allowed as deduction. The limit of rs 2L is applicable only to self occupied property.