ITR 2 calculating wrong rebate 87A

I am also facing the same issue.

MY Income as follows :

(1) income from saving bank a/c : 17121

(2) income from FDs  : 3,55,074

(3) dividend income : 4805

(4) STCG on shares : 30,078

(5) LTCG shares : 64,654

My tax is coming around 4500 despite 87 A rebate. in fact it should be zero.

I am also facing same issue. 87A rebate not allowing for 111A STCG under new regime in ITR2. When I choose old regime, it allows the rebate though.

Seems ITD is taking stance that no rebate will be given for any tax that is charged at special rate. Grievance reply someone else got - 


Following proviso shall be inserted in section 87A by the Finance Act, 2023, w.e.f. 1-4-2024 : Provided that where the total income of the assessee is chargeable to tax under sub-section (1A) of section 115BAC, and the total income—

This is very odd interpretation from ITD as section 87A only talks about total income under 115BAC
which means opting for new regime.
The word "total" gives very clear meaning, if rebate was actually only intended for not special rate income, the word "total" would have been missing.

Regardless if this interpretation is still to be accepted somehow then it means that all ITRs filed before July 5 where rebate was claimed on special rate income are defective returns and ITD has given no clarification on same either.

With only 10 days left, don't think any change will happen, so paid the tax today and filed ITR.