Case AQ – What is the difference between Tax Rebate and Relief (for individual persons ) ? Solution - By Amlan Dutta Tax rebate means like a voucher which helps us take credit of schemes by the government! For example, rebate under section 87 A is when the total income of the tax payer falls below 5 lakh’s Then the tax payer gets a rebate of 2000 Rs or tax payable whichever is less ! This is a rebate and no relief Like the English word relief , what relief means is when tax payer is subject to tax burden because of existing act This happens when the taxpayer is subject to double tax because of residence and source rule or say he gets arrears (salary ) in a certain year when tax rates are higher than the year in which the salary was supposed to be paid but has been paid at this later date In former when assesse is burdened by paying double tax(Indian and foreign country tax ) on Global income , the government gives relief under DTAA mechnanism covered under section 90 /90 A when there is bilateral agreement signed between the two countries In case there is no bilateral agreement signed , even then the tax payer gets relief under section 91 where he /she will get relief of the lower tax rate (India compared vis a vis the foreign country ) on the doubly taxed income ! You see , how the relief totally spans out as per the English term ! Understand likewise the concept’s so that you never have to mug up ! There is some relief on agricultural income but that is a topic for a different day ! Humble regards , Amlan Dutta
Posted on: Thu, 21 Aug 2014 07:40:31 +0000
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