87a rebate availment

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This discussion addresses a common issue where individuals who availed the 87A rebate on their income tax returns, specifically on short-term capital gains (STCG), found that the tax department did not allow it during processing. The participants explore options like revising the return or filing a rectification request, especially after a High Court judgement favoured the assessee. Despite a revised return, the demand was still calculated without the rebate. The consensus leans towards revising the return using the newly released utility that supports the rebate, particularly if filing under the new tax regime.

Chahat Khanna

Chahat Khanna (Querist)

05 January 2025 I had filed my income tax return before 5th July availing 87A rebate on tax on stcg, however while processing the return, department has calculated demand on the same, now if high court in its judgement allows the rebate, what should I do? Revise the return or file rectification to process the return?
I had filed rectification to reprocess once and department had not allowed rebate that time.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 January 2025 Better option would be to revise the return before 15th, with new utility that is to be released which would allow the rebate again.

Chahat Khanna

Chahat Khanna (Querist)

15 January 2025 No judgement by high court till now and today remains last date to revise itr, what should we do?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 January 2025 High court judgment already came in favor of assessee. That is the reason the department has allowed the rebate u/s. 87A for even STCG. For that new utility has been released and the date has been extended by 15 days. Revise the return today and claim the rebate as in your original return.

Chahat Khanna

Chahat Khanna (Querist)

24 February 2025 I had revised the return, however department has again calculated demand and not allowed rebate u/s 87A. What should I do now?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

24 February 2025 What was your aggregate income, including capital gains?

Chahat Khanna

Chahat Khanna (Querist)

25 February 2025 6.8 lacs total income from all sources.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 February 2025 Had you filed return under old regime? Or whether the return has been processed under old regime?

Chahat Khanna

Chahat Khanna (Querist)

25 February 2025 No I filed both original and revised under new regime and they have been processed under new regime only without allowing rebate on Tax on STCG.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

25 February 2025 File rectification request to reprocess it.

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