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Tax rebate or 5 lac exemption?

01 February 2019

Is it tax rebate available up to income Rs. 5 lakhs or income upto Rs. 5 lakhs tax exempted for all even though taxable income exceeds Rs. 5 lakhs

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12 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 01 February 2019

tax rebate available up to TAXABLE income Rs. 5 lakhs

3 Like

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v k s supraja (intermediate) (216 Points)
Replied 01 February 2019

Rebate under 87A applies to only such persons whose total income is less than or equal to 5 lakhs ... (i.e., no tax liability arises up to 5 lakhs)

Moreover if total income exceeds 5lakhs then there is no concept if rebate under 87A

2 Like

Nitesh bind (Student CA Final ) (12692 Points)
Replied 02 February 2019

Agreed with Supraja and Dhirajlal Sir.

4 Like

happyvalley blooms (58 Points)
Replied 02 February 2019

If some one has income of just 5 lakhs gross income (retired / no property income/no stocks/bonds etc - only income is FD interest) , the 5 lakh IT threshhold is automatic (like 2.5 lakhs now) or only with rebates which we have to claim under sub sections like 87C investments ?

Prakash Jindal (Accounts Manager) (36 Points)
Replied 02 February 2019

No, it's reabte and Slab has not been changed. Which means if you are earning even 3,00,000 still have to file return and then claim the Rebate u/s 87A.

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S ELAVARASI (ACCOUNTANT) (2975 Points)
Replied 02 February 2019

Is its to Total income or Taxable income...?

If my total income (receipts) Rs 10 lakhs. After prepare p&l my taxable income Rs. 5 lakhs. then can i avail the benifit?

Suryakant N Kotigiri (Asst. Manager Finance) (27 Points)
Replied 04 February 2019

Eligibility to Claim Rebate Under Section 87A FY 2019-20 (AY 2020-21)

You can claim tax rebate under this provision if you meet the following conditions:

You must be a RESIDENT INDIVIDUAL; and
Your Total Income, less Deductions, (under Section 80) is equal to or less than Rs 5 lakhs.
The rebate is limited to Rs 12,500. This means that if the total tax payable is lower than Rs 12,500, then that amount will be the rebate under section 87A. This rebate is applied to the total tax before adding the Education Cess (4%).

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 04 February 2019

Originally posted by : S ELAVARASI
	Is its to Total income or Taxable income...? If my total income (receipts) Rs 10 lakhs. After prepare p&l my taxable income Rs. 5 lakhs. then can i avail the benifit?

Net Taxable income after all deductions.... but only in case of individual/proprietorship firm ....

Vignesh Prabhu (Student) (7 Points)
Replied 05 February 2019

If your Net taxable income doesn't exceed Rs.5 lakhs, then you will be eligible for a rebate upto 100% of your tax payable under section 87A. However if your Net taxable income EXCEEDS Rs.5 lakhs then rate of income tax shall apply as before.