Section 87a of income tax act
Sabyasachi Acharjya
(Querist) 18 November 2013
This query is : Resolved
Sir,
I am an employer. I am deducting TDS from my employees by allowing slab of Rs.2,00,000/-. Now after inserting of Section 87a of I.T Act, Shall I allow Rs.2,20,000/- before computing TDS for the employees whose income is less then 5 lakhs.
BAALASUBRAMANNYAMM
(Expert) 18 November 2013
Many people think that the exemption limit is increased from Rs.2 to 2.2Lakhs. And some thinks that you need to claim refund of Rs.2000/- after you file the returns. But these two understandings are not correct.
Correct understanding is:
Tax Payers in Rs.2 to 5 Lakhs, slab will get a rebate of Rs.2000/- under Section 87 A and will claim this rebate, while filing the I.T.Return and will reduce their tax liability.
Rajendra K Goyal
(Expert) 18 November 2013
Well advised by the expert, nothing more to add.
