Not able to avail Rebate Under 87A in ITR2 even though Aggregate Income less than 5 lakh

Quick Summary
This discussion addresses a common issue where taxpayers filing ITR 2 are unable to claim the Section 87A rebate, despite their aggregate income being below £5 lakh. The problem arises due to how long-term capital gains (LTCG) are treated, as the rebate cannot be adjusted against tax on LTCG under Section 112A. While initial versions of the utility had defects, an updated version was released, though some users continued to experience the same problem. Ultimately, it was confirmed that if the total income, including LTCG, exceeds £5 lakh, the rebate is not applicable, and the tax must be paid.

LTCG is added in total income and is above 5 lakhs.

In Aggregate Income column, value is less than 5 lakhs. Tax is calculated on the aggregate income in the tax computation sheet, but 87A Rebate is not given. Please see attached screenshot:

 

Whether right or wrong, you will have to pay Rs. 11,447/- tax over the exempt income of Rs.8848/- as the aggregate income has crossed Rs. 5 lakhs.

I Paid the amount today and filed my return.

Thank you for all the help provided.

You are welcome  ..

Good luck...            

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