Rebate Under 87A Issue

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This query is : Resolved

Quick Summary

Taxpayers with income below ₹7,00,000 are facing issues claiming the Section 87A rebate on Short-Term Capital Gains (STCG) income, despite favourable ITAT and High Court rulings. The Income Tax e-filing portal doesn't seem to recognise this claim, preventing ITR filing without full payment. Options discussed include filing a complaint or potentially appealing after filing the return.

Prathvin

Prathvin (Querist)

23 August 2025 My total income is below ₹7,00,000 for AY 2024-25. I have a tax payable of ₹9,991 on STCG under Section 111A, and ₹13,678 on other income. As per the recent ITAT Ahmedabad ruling, the rebate under Section 87A can also be claimed on STCG income.

However, on the Income Tax e-filing portal, even after manually editing the rebate amount, the system still shows me only two options — “Pay Now” or “Pay Later” — and does not allow me to file my ITR without payment.

Has anyone faced this issue? What steps should I take to correctly file my ITR and claim the rebate?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 August 2025 Not only ITAT ruling, even Mumbai High court has directed ITD to calculate rebate u/s. 87A for STCG; but CPC is not allowing it in ITR processing. You need to file appeal to get the rebate amount.

Prathvin

Prathvin (Querist)

23 August 2025 so i file the return, by paying the tax they are demanding on the STCG, or do i manually change the rebate amount and select pay later option, and if i do so will the return be considered valid?. And after doing this should i file an appeal in both case?

Prathvin

Prathvin (Querist)

23 August 2025 I would really like a clarification on how to proceed with the same

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

23 August 2025 If you can upload with rectified rebate amount.... Go ahead; or file complaint under 'Grievances'

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 September 2025 Good luck..

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