Income tax dept to correct ITR forms to allow eligible taxpayers to claim section 87A tax rebate for FY 2023-24
Income Tax Rebate: "The updated utilities for ITR forms 2 and 3 giving effect to the Circular No. 21 dated 31st December 2024 and including the option to update 87A rebate will be made available shortly," said the Income Tax Department. This means you can soon expect to file a revised ITR or belated ITR to claim 87A tax rebate if eligible. By claiming 87A tax rebate, your total tax liability gets reduced and, in some cases, it gets nil.
The Income Tax Department has announced good news for taxpayers who are eligible to claim section 87A tax rebate for FY 2023-24 but were unable to claim it. The tax department has announced this relief on the income tax return (ITR) e-filing portal late night on December 31, 2024. As per the announcement eligible taxpayers will be able to soon file a revised or belated income tax return to avail section 87A tax rebate either through the ITR filing utility or online on the e-filing portal. This relief follows the interim judgement by Bombay High Court directing the tax department to extend revised and belated ITR filing deadline for eligible taxpayers to claim 87A tax rebate.
The necessary back-end software related changes in the online ITR form will be made shortly to give effect to this (87A rebate claim). Under section 87A of the Income Tax Act, 1961, eligible taxpayers can claim tax rebate up to Rs 12,500 under the old tax regime and up to Rs 25,000 under the new tax regime.
“The updated utilities for ITR forms 2 and 3 giving effect to the Circular No. 21 dated 31st December 2024 and including the option to update 87A rebate will be made available shortly,” said the Income Tax Department on the e-filing ITR portal on December 31, 2024.
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