Income tax demand for 87a rebate not allowed on STCG
This query is : Resolved
24 September 2024
Resolved and deleted.
25 September 2024
No remedy now, you will have to pay the demand. That was defect in the utility for the STCG rebate u/s. 87A under new regime; which was rectified in newer version.
29 September 2024
Resolved and deleted.
29 September 2024
Even if it was disputed matter, but CPC is strong on its stand. All those who had availed this rebate by filing ITR before 5th July, 2024; have received the demand for the difference.
The interest gets accrued if the demand is not paid within 15 days.
No question of changing regime now.
The interest gets accrued if the demand is not paid within 15 days.
No question of changing regime now.
Message likes :
1 times
11 October 2024
The case of **Beena Manishbhai Fofaria vs. CIT (Appeals)** revolves around the application of **Section 87A** of the Income Tax Act, especially after the amendments brought by the Finance Act, 2023.
In this case, the taxpayer filed her return for the Financial Year 2023-24, declaring a total income of Rs. 6,93,260, which included short-term capital gains (STCG) of Rs. 65,066. She claimed a rebate of Rs. 20,010 under Section 87A, as her total income was under Rs. 7,00,000. However, the Centralized Processing Centre (CPC) restricted the rebate to Rs. 10,250, disallowing the rebate on STCG. This led to a reduced refund amount, prompting the taxpayer to file an appeal.
The CIT (Appeals) ruled in favor of the taxpayer, stating that the Finance Act, 2023, permits a rebate on total income (excluding long-term capital gains taxed under Section 112A) if the total income is within Rs. 7,00,000. The ruling confirmed that short-term capital gains are eligible for the rebate if the total income is under Rs. 7,00,000.
This case is significant as it clarifies the application of Section 87A and benefits many taxpayers.
In this case, the taxpayer filed her return for the Financial Year 2023-24, declaring a total income of Rs. 6,93,260, which included short-term capital gains (STCG) of Rs. 65,066. She claimed a rebate of Rs. 20,010 under Section 87A, as her total income was under Rs. 7,00,000. However, the Centralized Processing Centre (CPC) restricted the rebate to Rs. 10,250, disallowing the rebate on STCG. This led to a reduced refund amount, prompting the taxpayer to file an appeal.
The CIT (Appeals) ruled in favor of the taxpayer, stating that the Finance Act, 2023, permits a rebate on total income (excluding long-term capital gains taxed under Section 112A) if the total income is within Rs. 7,00,000. The ruling confirmed that short-term capital gains are eligible for the rebate if the total income is under Rs. 7,00,000.
This case is significant as it clarifies the application of Section 87A and benefits many taxpayers.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR -1 Filing
- Section 54 f disallowed will be taxed at what rate
- TWO FIRM NAME IN ONE GST NUMBER
- Transportation of Petrol, Diesel by GTA and Other than GTA
- Form 16 Issues
- IGST Refund pending since June 2022.
- SEA GOING ALLOWANCE
- Eway issued more than one
- Trust 10AB form required for old asst. years?
- Which ITR application
- Igst utilisation query
- Section 12A(1)AC
- Interest will be paid
- CHANGE IN PARTICULARS OF DIRECTOR
- Non- payment of GST on supply of services- reg
- Accumulated surplus exceeding 15%
- Different GST Number MEESHO
- Fees amount transfer procedure for two doctors
- Notice u/s 148 of IT Act
- Credit note for cycle round
Trending Online Classes
CAclubindia
