B.Siddheshwar Started The Discussion:
I want to know about Rebate u/s 87 of Income Tax? what are the provisions of section 87? How It is calculated?
Dear Siddheshawar ji,
I think, you are talking about Section 87 A which is inserted in Income Tax Act recently in this year. According to it, an assessee being an individual resident of India, whose income is up to 5 lacs will get tax credit of Rs. 2000/-. Such Tax payers in the slab 2 to 5 lacs will get rebate in Tax of Rs. 2000/- at the time of filing the return.
Dear Koragaonkar Ji
Thanks for your response.
Many of us are not aware of this provision.
Please elaborate more on this; such as :
Applicable from which Assessment year ?
How can the assessee take benefit of it ?
How the Tax credit will be given ?
Whether at the time of filing the IT Returns, one can deduct it (if there is still some Tax amount > Rs. 2000, still payable) ?
Or if it is already deducted as TDS; one can get a REFUND after filing returns ?
Do answer the above queries.
Dear Raj Kumar ji,
First of all, thanks for raising the questions. It compelled me to study this section.
I am not IT expert. But still, I have pleasure to reply you, Sir.
It seems to me, you have made a mistake in your post / in your question. The word "or" in your question is wrongly put by you. If it is so, your question is - if the amount of Rs. 2000/- is deducted as TDS, is it refunded by ITO after we file the return?
Answer to this question is:
Any tax paid by you in excess, is refundable on filing the return. If your tax liability is nil but your employer has deducted Rs. 2000/- as TDS, you can claim it from ITO on filing the return.
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