Education Cess and Rebate under Section 87A

[Guest]

Dear Experts,

I am filing income tax return for 1st time, would like to know.

1. My Income is ₹ 387,305.00 for the FY 2016-17 and tax on ₹ 137,305.00 Tax payable is 13,730.50 and Under Section 87A rebate available for they FY 2016-17, AY 2017-18 would it be ₹ 2000 or ₹ 5000.00 i can deduct from taxable income excluding Education Cess.

2. How much % of Education Cess I have to pay on ₹ 13,730.50, is it 2% or 3% for the FY 2016-17, AY 2017-18 or is it GST that I have to add in place of Cess, if it is GST, kindly advise how.

3. I have a carry forward loss of ₹ 118, 414.75, I am filing ITR-2, under which column should I put the carry forward loss in ITR-2.

4. Also, how to go about filing the returns online, is there a step by step instructions to file returns online.

Thanks in advance, Would humbly request experts to let me know so that I can file my income tax returns by 31st.

Regards,Paul

[DR.MARIAPPAN GOVINDARAJAN]

There is no role for GST in income tax. Cess is payable @ 3% on the tax payable.

Since it is the first return to be filed you, in my opinion, you cannot set off the loss as you shown.

Online return may be filed. Instructions are there in the web site of Income Tax Department.

AI Summary

Education cess: payable on tax payable; GST does not apply; carryforward loss not allowed for first-time filer. The adviser confirmed GST does not apply to income tax and that education cess is charged on the tax payable. The adviser indicated no specific rebate calculation under Section 87A was provided. As a first-time filer, the taxpayer cannot set off the reported carryforward loss as presented. Online filing is available with instructions on the Income Tax Department website.