x
Subscribe to our mailing list to get the updates to your email inbox.. Just Enter your email id below and click on subscribe button! After that, verify it through the verification email received on your email id and start learning more!..
Subscribe to our mailing list to get the updates to your email inbox.. Just Enter your email id below and click on subscribe button! After that, verify it through the verification email received on your email id and start learning more!..STAT COUNT
FeedBurner FeedCount
Subscribe To
Posts
Comments
Popular Posts
Support :
Interest Payable US 234ABC | TDS RATES | DUE DATE REMINDER | INCOMETAX RATES
Copyright © 2013. StudyCafe.in - All Rights Reserved
Copyright © 2013. StudyCafe.in - All Rights Reserved
what is tax credit??????
ReplyDeleteBudget 2013 (P.y 13-14 & A.y 14-15)
ReplyDeletePersons whose income is upto Rs 5
lakhs will get a tax credit of Rs 2000.
They will get a rebate of Rs 2000 under
newly inserted section 87A in Income
Tax Act.
As per new section 87A,
“An assessee, being an individual
resident
in India, whose total income does not
exceed five hundred thousand rupees,
shall be entitled to a deduction, from
the
amount of income-tax (as computed
before allowing the deductions under
this
Chapter) on his / her total income with
which he/she is chargeable for any
assessment year, of an amount equal
to
hundred per cent of such income-tax
or
an amount of two thousand rupees,
whichever is less.”
Myth / Wrong understanding
Many people think that the exemption
limit is increased from Rs 2 lakh to Rs
2.2
lakh.
Some think that you need to claim
refund
of Rs 2000 after you file the return.
But above understanding is NOT
Correct.
Correct Understanding : Taxpayers in
Rs
2-5 lakhs slab will get a rebate of Rs
2000
under section 87A and will claim this
rebate while filing the returns & will
reduce their tax liability.
Whether the basic exemption limit
has been raised from Rs 2 lakhs to Rs
2.20 lakhs ?
No. The existing slabs and rates have
been kept unchanged.
Tax on income from 2 lakh to 5 lakh is
at
10%,
up to Rs 10 lakh at 20% and
above 10 lakh at 30%.
Only taxpayers in Rs 2-5 lakhs slab will
get a rebate of Rs 2000 under section
87A
From when this new rebate is
available?
This new section (87A) has been
inserted
w.e.f 01-April-2014 and will be
applicable
for Assessment year 2014-2015 &
onwards.
For the income earned in 2013-2014,
you
will get this rebate.
If my tax due is less than Rs 2000,
before claiming this rebate, will I get
a refund ?
No. the rebate is restricted to amount
of
tax payable upto maximum of Rs 2000.
So
if your Income is Rs 2,10,000 after all
deductions and your tax liability is Rs
1000, you will get rebate of whole Rs
1000 under new section 87A and no
tax
will be payable.
If my salary package CTC is Rs 6 lakhs,
can I claim this rebate ?
May be. It will depends on the “Total
Income” under Income Tax Act. Total
Income is calculated after claiming all
deductions (80C, 80D etc) from the
Gross
total taxable income. So if your Net
Taxable income is below Rs 5 lakhs,
you
can claim rebate of Rs 2000 under
section
87A of Income Tax Act.
Whether this rebate is also available
to Non resident?
No , Rebate under section 87A is not
available to non resident persons
(NRI).
AUTHOR VIEWS
Why finance minister has introduced
this tax credit rather than increasing
the exemption limit to Rs 2.2 lakhs ?
It would have same effect.
Valid question. There may be couple of
reasons for this, If Chidambaram had
raised the exemption limit to Rs 2.2
lakhs,
1) then Senior citizen would not have
got
benefit as exemption limit for them is
already 2.5 lakhs. But now Senior
citizen
can also claim rebate under section
87A.
2) those who would be in the Rs 2-2.2
lakh income bracket will fall out of the
return filing net and government don’t
wants this.
What is Rs. 30000+20% of the amount?????
ReplyDelete36000
Delete