I received in the FY 2015-16 a sum of Rs 7,20,000 in which Rs 1,16,000 belongs to arrears for the previous FY 2014-15. As a result, I am left with Rs 6,04,000 (Rs 7,20,000 minus Rs 1,16,000 arrears) for the FY 2015-16.
I have invested Rs 1,50,000 u/s 80C in the FY 2015-16. After taking into consideration Rs 1,50,000 and Rs 1,16,000, I am left with a sum of Rs 4,54,000 for this FY. My query is under these circumstances, am I eligible for the rebate of Rs 2,000 u/s 87A for the FY 2015-16 ?
Your total income after claiming deduction allowable under Section 80C of the Income-tax Act 1961 (The Act) would be Rs 5,70,000. The rebate under Section 87A of the Act is allowable to an individual resident in India whose total income does not exceed Rs 5 lakh. You would, therefore, not be entitled to a rebate under Section 87A of the Act for the assessment year 2016-17 as your total income including arrears of salary would be more than Rs 5 lakh.
Source : The Tribune/16.10.2017