Few days ago, my friend uncle came to me to know from me whether he will get Rs. 2500 rebate from Income tax in assessment year 2017-2018 for earned income which is between Rs. 350,000 to Rs. 5,00,000 in a year.
Clarification
So, I tried to clear his all doubts.
1. First, he is earning pension of Rs. 41000 per month from State Govt.. So, he is earning Rs. 492000 per year.
2. Now, we have to understand the 87A Rebate for AY 2017-18 ( India) provision.
A. Annual total income must be Rs. 350000 or less than this amount after all deductions under section 80
B. He must be Indian Individual.
C. If A and B condition will satisfy, maximum rebate from Income tax is Rs. 2500. If tax liability is less than Rs. 2500, rebate will be equal to tax liability. Maximum rebate is Rs. 2500 because income tax on 350000 is Rs. 2500 ( 350,000-300000) X 5/100 = Rs. 2500
In AY 2016-17, rebate was Rs. 5,000 and all Indian individual included whose income is upto Rs. 5,00,000. So, from 1st april 2017 to 31st 2018 assessement year, central govt. has decreased rebate amount and limit of income holder who are eligible for this rebate.
Clarification
So, I tried to clear his all doubts.
1. First, he is earning pension of Rs. 41000 per month from State Govt.. So, he is earning Rs. 492000 per year.
2. Now, we have to understand the 87A Rebate for AY 2017-18 ( India) provision.
A. Annual total income must be Rs. 350000 or less than this amount after all deductions under section 80
B. He must be Indian Individual.
C. If A and B condition will satisfy, maximum rebate from Income tax is Rs. 2500. If tax liability is less than Rs. 2500, rebate will be equal to tax liability. Maximum rebate is Rs. 2500 because income tax on 350000 is Rs. 2500 ( 350,000-300000) X 5/100 = Rs. 2500
In AY 2016-17, rebate was Rs. 5,000 and all Indian individual included whose income is upto Rs. 5,00,000. So, from 1st april 2017 to 31st 2018 assessement year, central govt. has decreased rebate amount and limit of income holder who are eligible for this rebate.
