- Thank you for publishing my letter and the clarifications received regarding the rebate of Rs.2,000/- in Income Tax under Sec 87 A of Income Tax Act for those whose taxable income does not exceed Rs.5,00,000/-.I have a small doubt. Whether Educational cess @ 3% of the tax is to be paid on the gross tax or on the amount of tax arrived at after reducing the tax by Rs.2,000/- ?
- I shall be happy if some of our friends clarify on this point also.
- Thanking you and with best wishes,
Yours sincerely.
(B.S.Gopala Krishna)