Is rebate u/s 87A available for financial year 2014-15 ?

Is rebate u/s 87A available for financial year 2014-15 ?. Find Complete Details for Rebate U/s 87A. In this article you can find all details about Section 87A like – What Does Sec 87A says, Is this Rebate available for financial year 2014-15 also?, Maximum amount of rebate available, Income limit etc. Now you can scroll down below and check complete details regarding “Is rebate u/s 87A available for financial year 2014-15 ?”

Rebate u/s 87A :

Income Tax Rebate under Section 87A was introduced by P. Chidambaram while presenting Budget 2013 and this Income Tax u/s 87A Rebate became applicable from Financial Year 2013-14. And now there is a lot of confusion among the general public regarding the applicability of this provision for financial year 2014-15.

What does Sec 87A says. ?

An assessee, being an individual resident in India, whose total income does not exceed 5.00 Lacs rupees, shall be entitled to a deduction, from the amount of income tax on his total income with which he is chargeable for any assessment year, of an amount equal to 100% of such income-tax or an amount of 2000/- rupees, whichever is less.

Is this Rebate available for financial year 2014-15 also?

There are no proposed changes to tax rebate available under section 87A in the union budget 2015 presented by A run jaitely ,So the rebate under section 87 A is available even for the financial year 2014-15.

Important points to be known regarding rebate u/s 87A :

1.Eligible assesses :

Rebate under section 87A is available to the individual assesses who are Indian Citizens.
So this benefit is not available to

1.Hindu undivided family
2.Body of individuals
3.Association of persons
4.Company
5.Partnership firm
6.Trust
7.LLP…etc.,

This benefit is available to all categories of Individuals whether Male or Female or Senior Citizens. But this is not available to very senior citizens and non residents.

2. Maximum amount of rebate available :

Rebate available u/s 87A is least of the following
a) Actual tax liability

b) Rs 2000.

The maximum amount of tax rebate u/s 87A is restricted to of Rs.2,000.only.

3. Income limit :

Eligible Assesses earning net total income up to Rs.5 lakhs are eligible to avail tax rebate u/s 87A. If the income exceeds 5,00,000 then this benefit is unavailable to them.

Total income for this purpose is the income calculated less any tax deductions u/s 80C to 80U.

4. Rebate is calculated before cess :

Income Tax Rebate of Rs. 2000 is allowed before the levy of Education Cess and SHEC. In other words, Education Cess and SHEC would be levied on the tax payable after allowing for Income Tax Rebate of Rs. 2000