Capital Gain Rebate 87A

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This discussion addresses the eligibility for the Section 87A tax rebate when an individual has Short-Term Capital Gains (STCG) under Section 111A. While tax software might allow claiming the rebate, it's generally not applicable to STCG income. The consensus suggests it's better to avoid incorrectly claiming the rebate to prevent future issues with tax assessments, even if it means a higher initial tax liability.

Sachin Kumar

Sachin Kumar (Querist)

31 July 2024 I had HP, other sources and CG income..... STCG 111A taxable@15%...system is allowing to take rebate of ₹25000 but this is wrong as rebate is not applicable on STCG 111A.... should I take 87A rebate to reduce tax liability from 45000 to 20000 , when intimation comes later I will pay tax...

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

31 July 2024
Yes, in case of demand you can pay later.

Sachin Kumar

Sachin Kumar (Querist)

31 July 2024 Sir, I am filing ITR through one software , I can manually take rebate 87A in that software , if i manually take it , i will get rebate but practically this is wrong !

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

31 July 2024 In that case better go without it.

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