I am a government pensioner. I am a individual,senior citizen, resident.My Income from salary is Rs 3,81,070 for
financial year 2017-18.I invested Rs 40,000 in senior citizen saving scheme(section 80c) . I have national health
insurance scheme Rs 150 per month .For 12 months,Rs 1800 comes under 80D. I entered these details in
https://www.incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx. It calculated as below.
net taxable income Rs 3,39,270.
Income liable to tax at Normal rate Rs 1,964
Income tax after relief u/s 87A Rs 0.
So, I submitted tax computation sheet with investment proof to treasury as above.
But treasury officer deducted Rs 1,964 without considering relief u/s 87A.
1.Please let me know I am eligible for relief u/s 87A or not ?.
2. Please explain about relief u/s 87A.
1 Answers
Dear Sir,
Regarding Sec 87A :
Rebate under Section 87A
Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed in Budget 2017-18.
- Only Individual Assesses earning net income up to Rs 3.5 lakhs are eligible to enjoy tax rebate u/s 87A.
- For Example : Suppose your yearly pay comes to Rs 4,50,000 and you claim Rs 1,50,000 u/s 80C. The total net income in your case comes to Rs 3,00,000 which makes you eligible to claim tax rebate of Rs 2,500.
- The amount of tax rebate u/s 87A is restricted to maximum of Rs 2,500. In case the computed tax payable is less than Rs 2,500, say Rs 2,000 the tax rebate shall be limited to that lower amount i.e. Rs 2,000 only.
- The Tax Assesse is first required to add all incomes i.e. salary, house income, capital gains, business or profession income and income from other sources and then deduct the eligible tax deduction amounts u/s 80C to 80U and under section 24(b) (Home Loan Interest) to come up with the net taxable income.
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