Tax Rebate u/s 87A
Reuben Prabhu Kumar (Auditor) (62 Points)
01 February 2019
What is the exact date effective for the announced rebate limit of Rs.12500? Is it from 1st April 2019 or 2020?
24 Replies
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178014 Points)
Replied 01 February 2019
For FY 2019-20, provided approved by new government !!
RAJKUMAR TG
(397 Points)
Replied 01 February 2019
an Interim budget .... money bill.
does it require approval from next govt.
pls enlighten me.
does it require approval from next govt.
pls enlighten me.
Reuben Prabhu Kumar
(Auditor)
(62 Points)
Replied 01 February 2019
Thank you very much for your prompt reply Mr.Rambhia sir.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178014 Points)
Replied 01 February 2019
The Vote on Account is only for three months before the new government presents a full-fledged budget in July.
In the absence of presentation of a Full Budget, the outgoing government seeks a vote on account from the Parliament for proposed expenditure to be incurred in the next few months till the new government takes over. There are no major announcements related to any new schemes or sops during a vote on account as the new government's stance could differ from that of the outgoing government.
Though some governments have used the Vote on Account to make big ticket announcements, it has not always worked for the ruling party in retaining power.
Nitesh bind
(Student CA Final )
(12692 Points)
Replied 02 February 2019
Agreed with Dhirajlal Sir. Still I want to clarify the issue in bit details for other of our friends;
The government presents an interim budget if it does not have time to present a full Budget or if the general elections may be in the near future. So usually, in an election year, the outgoing government presents an interim budget and the task of framing the full budget is left for the next government.
The Parliament, via interim Budget, passes a vote-on-account that permits the government to meet the expenses of the government until the new Parliament passes the Budget for the whole year. In case of election, the vote-on-account is usually for a 4-month period.
In an interim budget, the vote-on-account asks for Parliament’s approval for incurring expenditure for part of a financial year. The estimates are presented for the whole year, as is the case with the regular Budget. The new administration has the full right to change the estimates fully when the final Budget is presented. But this does not mean that the new government has to mandatorily change the policies/plans of Interim Budget. It may change or may adapt the policies of Interim Budget presented by old govt.
The government presents an interim budget if it does not have time to present a full Budget or if the general elections may be in the near future. So usually, in an election year, the outgoing government presents an interim budget and the task of framing the full budget is left for the next government.
The Parliament, via interim Budget, passes a vote-on-account that permits the government to meet the expenses of the government until the new Parliament passes the Budget for the whole year. In case of election, the vote-on-account is usually for a 4-month period.
In an interim budget, the vote-on-account asks for Parliament’s approval for incurring expenditure for part of a financial year. The estimates are presented for the whole year, as is the case with the regular Budget. The new administration has the full right to change the estimates fully when the final Budget is presented. But this does not mean that the new government has to mandatorily change the policies/plans of Interim Budget. It may change or may adapt the policies of Interim Budget presented by old govt.
RAJKUMAR TG
(397 Points)
Replied 02 February 2019
if new govt drastically changes the proposals then it will lose confidence of people and may draw bad results in upcoming elections in other parts.....
hope I am correct...
hope I am correct...
Reuben Prabhu Kumar
(Auditor)
(62 Points)
Replied 02 February 2019
Is there any precedent in Indian history where an incoming government has drastically changed or dropped totally the proposals of an interim budget of an outgoing government?
parameswari chinareddy
(23 Points)
Replied 03 February 2019
TI-350000,
350000×5%=17500
17500-12500=5000
5000-2500(rebate)=2500
2500+3%(cess)=2575
350000×5%=17500
17500-12500=5000
5000-2500(rebate)=2500
2500+3%(cess)=2575
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178014 Points)
Replied 03 February 2019
Missed 2.50 lakhs basic slab exemption in above calculation; otherwise net tax liability would be zero.
parameswari chinareddy
(23 Points)
Replied 03 February 2019
Ti=350000,
350000-250000=100000
100000*5%=5000
5000-2500(rebate)=2500
2500 +3%=2750..is it ok? If not pls send correct one...
350000-250000=100000
100000*5%=5000
5000-2500(rebate)=2500
2500 +3%=2750..is it ok? If not pls send correct one...
RAJKUMAR TG
(397 Points)
Replied 03 February 2019
no wrong.
total income upto 5 lac no tax due to rebate.
u have to file incone tax return show total I come upto 5 lac after all deductions claim rebate and if any tds deducted will be refunded to u .
pls note ur income details must match with 26as. .....it can b more than 26 as but not less.
In short up to 5 lac total income if u file return then no tax liability.
total income upto 5 lac no tax due to rebate.
u have to file incone tax return show total I come upto 5 lac after all deductions claim rebate and if any tds deducted will be refunded to u .
pls note ur income details must match with 26as. .....it can b more than 26 as but not less.
In short up to 5 lac total income if u file return then no tax liability.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(178014 Points)
Replied 03 February 2019
If you are asking for AY 2018-19, its OK; with Rs. 1000 late fees.
But here discussion is for proposed tax liability of AY 2019-20.
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