I want to know about Rebate u/s 87 of Income Tax? what are the provisions of section 87? How It is calculated?
From India, Mumbai
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From India, Mumbai
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I believe you are referring to Section 87A, which was recently introduced in the Income Tax Act this year. According to this section, an assessee who is an individual resident of India, with income up to ₹5 lakhs, will receive a tax credit of ₹2000. Taxpayers falling under the income slab of ₹2 to ₹5 lakhs will be eligible for a tax rebate of ₹2000 at the time of filing their return.
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From India, Mumbai
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2584Regards
From India, Mumbai
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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 will the Tax credit 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, can one get a REFUND after filing returns?
Please do answer the above queries.
Warm regards.
From India, Delhi
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- Applicable from which Assessment year?
- How can the assessee take benefit of it?
- How will the Tax credit 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, can one get a REFUND after filing returns?
Please do answer the above queries.
Warm regards.
From India, Delhi
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Applicable from AY 2014-15.
How Can the Assessee Take Benefit of It?
It is a tax rebate and not a tax exemption. At the time of filing the return, one has to deduct the rebate amount from the tax payable. The IT authority will make provision in the form of return for tax payable after the rebate.
How Will the Tax Credit Be Given?
Answered as above.
Deduction at the Time of Filing IT Returns
It is not a payment. It is a rebate in tax. From the tax amount with surcharge, there will be a deduction of this rebate.
Refund After Filing Returns
Of course.
Regards
From India, Mumbai
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How Can the Assessee Take Benefit of It?
It is a tax rebate and not a tax exemption. At the time of filing the return, one has to deduct the rebate amount from the tax payable. The IT authority will make provision in the form of return for tax payable after the rebate.
How Will the Tax Credit Be Given?
Answered as above.
Deduction at the Time of Filing IT Returns
It is not a payment. It is a rebate in tax. From the tax amount with surcharge, there will be a deduction of this rebate.
Refund After Filing Returns
Of course.
Regards
From India, Mumbai
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