87A rebate being denied on STCG under old regime

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Total income =4,91,049 (IFOS=4,48,349;  STCG=41655,Ltcg=1045)

Tax on Normal income =7418

Tax on special income=7902

 

only rebate available is 7418 , tax payable after rebate is =7902.

Why not full 12,500 rebate is available ?

even in old regime no  87 A benefit is  not available, even if income is less than 5,00,000.

Experts please elaborate What I am missing ? 

 

Replies (3)
Quick Summary
A user is seeking clarification on why their Section 87A rebate is being denied on Short-Term Capital Gains (STCG) even though their total income is below ₹5,00,000 under the old tax regime. They've noticed the rebate is only applied to their normal income, not the special income from STCG, despite the income threshold being met. The discussion highlights that the Income Tax Department has removed the rebate for income charged at special rates, even though there have been court judgments against this. The user is questioning if they are alone in facing this issue, as some individuals and even CAs claim the rebate is still available.

ITD has removed rebate u/s. 87A on income charged at special rates (like STCG u/s. 111A etc.). Even after Mumbai High court's judgement against it, it was denied last year to so many assesses.

but some people are getting it under old regime.

even some CAs also vouch for the same. 

I am getting rebate only on Normal income.

I am wondering am I the only person facing this issue. 

Gone are the days when it was available in Old regime. Last year we filed ITRs in both regime where the rebate over STCG u/s. 111A was available (before 5th July, 2024), but the department raised demand while processing the ITRs. (or reduced refund to that extent).

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