LTCG AND STCG demand notice

A client received a demand notice from the IT department regarding Capital Gains (LTCG & STCG) and bank interest income. Despite income being below £7 lakhs and claiming a rebate under Section 87A, the department only allowed the rebate on regular income, taxing LTCG and STCG separately. The advice given is to pay the differential tax, as rebates are not applicable to these specific income types under the new tax regime.