Sir,
I have read in your webpage only that as per Section 87A, it is mentioned that.... if your taxable income is less than Rs.3.5 lakhs, then you will be eligible for a tax rebate of Rs.2500/-. One of my friend is having income less than Rs.3.5 lakhs, that means after deduction of 80C etc. I feel that the benefit is not extended by her Employer. If this benefit is available, then how to claim refund? Is it possible from ITR1 filing online?
thanks.
ppvarma.
1 Answers
Dear Mr Varma,
Has she filed her Income Tax Return for AY 2017-18?
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.
- If the above net taxable income happens to be less than Rs 3.5 lakhs then the tax rebate of Rs 2,500 comes in to the picture and should be deducted from the calculated total income tax payable.
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