Eligibility for claiming rebate.!

General Discussions
1

What is the eligibility for claiming rebate u/s 87A?

Anyone who can help.

Thanks in advance.

3 Likes
2

An individual is eligible for a tax rebate under section 87A of the Income Tax Act, 1961, if their taxable income is below Rs 5 lakh in FY 2022-23 (AY 2023-24). Rs 12,500 is the maximum amount of income tax rebate that is available in both the tax regimes - old as well as new

4 Likes
3

If an individual’s taxable income is eligible for tax rebate under section 87A, but he has income by way of LTCG from equity mutual funds or listed equity shares, special rate of tax @10% will be payable on such LTCG by the individual, without considering rebate u/s 87A on such tax payable. Maheshwari explains this with an example.

For instance, an individual has net taxable salary is Rs 3.3 lakh a year and LTCG from sale of an equity mutual fund is Rs 1.10 lakh.

4 Likes
4

Thanks @sureshbusam , Also can total deductions exceeds the Gross Total Income (GTI)?

Priya

3 Likes
5

@spriya ,
For FY 2023-24 (AY 2024-25), in Old Tax Regime rebate u/s 87A old tax will be same as last year. 12500 upto taxable income 5 lacs. But in New Tax Regime rebate u/s 87A will applicable upto taxable income 7 lacs and rebate amount will be 25000/-.

4 Likes
6

A post was split to a new topic: Employee gift coupon policy manual

7

Hi @spriya ,

​​​​​​​Deductions provided under Chapter VIA of the Income tax Act, cannot exceed the Gross Total Income (GTI). Income here means all the income accumulated in the GTI and reduced by the incomes mentioned below.

  • Long term Capital Gain (LTCG) under [section 112] of the Act
  • Long Term Capital Gain (LTCG) under [section 112A] of the Act
  • Short Term Capital Gains (STCG) under [section 111A] of the Act
  • Incomes referred to in [sections 115A], [115AB], [115AC], [115AD], [115BBA] and [115D]
  • Casual incomes like winnings from lotteries, horse races, etc., under [section 58(4)] of the Act.

Hope this answers your query.

Roshan.

1 Like