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Last opportunity for eligible taxpayers to claim 87A tax rebate
Income tax rebate u/s 87A: Following the Bombay High Court order to extend the revised and belated income tax return (ITR) deadline to January 15, 2025, CBDT has extended it. ?If you are eligible to claim section 87A tax rebate but prevented from claiming it in the original ITR then file a a revised return to get a tax refund for the excess tax paid in the original return.
The section 87A tax rebate issue is of special interest and debate among taxpayers. The issue became so contentious that multiple court cases were filed against the tax department’s decision to deny eligible taxpayers the benefit of 87A tax rebate. The tax department seems to have taken a stance that if special rate incomes like short term capital gains income exists in the ITR then that ITR cannot claim 87A tax rebate. This stance however was not properly communicated to taxpayers and changes were made to the ITR processing software suddenly on July 5, 2024, which is what caused the whole 87A tax rebate mess.
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