How to appeal flow on getting 87A rebate for Capital Gains in New regime

A CA can provide expertise, especially if the case is complex. 

CA fees vary based on the complexity of the case and the CA's experience.

Govt. charges : You will need to pay fees for filing the appeal, which are generally normal.

Document preparation & processing charges is minimal if doing it yourself; otherwise, part of CA fees.

The process can take several months to a year or more, depending on the tax department's workload and appeal complexity.

Most appeals can be filed online through the income tax department's e-filing portal You can file Form 35 for an appeal against an order under section 143 (3) or other relevant sections. 

For a refund amount of approximately Rs.25,000/- , the costs invovled in appealing might not be very high, but consulting a CA  could be beneficial to ensure proper handling and to understand potential outcomes. 

You can appeal online yourself via the IT portal, but if the notice is complex, consulting a CA is safer. Costs and time vary, but many cases are resolved in a few weeks.

Geometry Dash

@ Baskaran

Why not contact Mr Rachakonda himself directly and get the fee and other expenses details. 

I have sent you copy and link of the same case in your previous query you can refer it and some YouTube videos for proper appealing 

CIT cost is 1,000 ₹ for appeal 

If you filed properly then you should get rebate of yours otherwise in 20% case they may reject it

If you still want to go for further then next step is ITAT and fee is 10,000 and also expert fee extra so it's not viable for 25,000 rs refund 

But CIT way is viable so can try

@ Baskaran

You never mentioned that you already got a notice from the I-T Department.

No, sir, I am going to file for this AY

Thanks for your useful Info for my further planning

The 87A rebate denial for capital gains income is not a processing error that can be appealed. It is how the law now works.

From AY 2025-26 onwards, the income tax portal does not allow Section 87A rebate against:
- STCG taxed under Section 111A at 15% (listed equity, equity MF held under 12 months)
- LTCG taxed under Section 112A at 12.5% (listed equity, equity MF above Rs 1.25 lakh threshold)

The CBDT circular from January 2025 confirmed this position. The portal is computing correctly.

What you can do instead:
1. Check if your total taxable income excluding special-rate CG is below Rs 12 lakh. If it is, you get the rebate on the slab-rate portion of your tax.
2. For LTCG above Rs 1.25 lakh, plan gain realization across financial years to stay within the annual exemption threshold and avoid the tax entirely.
3. If the portal output matches your manual calculation, the demand (if any) is legally valid and no appeal will succeed on this ground.

For the exact rules on what qualifies for the rebate and what does not: [Section 87A rebate guide for AY 2026-27](https://taxgarden.in/blog/section-87a-rebate-ay-2026-27-eligibility-limit)