Income Tax Rebate: Relief news has come for those taxpayers who could not get tax rebate under section 87A while filing income tax returns for the financial year 2023-24 and assessment year 2024-25. So that such taxpayers can again file revised or belated returns and get tax rebate, the Income Tax Department has updated the offline and online utilities for ITR Forms No. 2 and 3. Using this option, taxpayers will now be able to get tax rebate under Section 87A by visiting the income tax portal and filing income tax returns again for the assessment year 2024-25.
Taxpayers will be able to claim tax rebate under 87A
While sharing this information on its online return filing portal, the Income Tax Department has said that offline and online utilities for ITR Forms 2 and ITR Forms 3 have been updated. According to the tax department, taxpayers can now use this option to get tax rebate by visiting the income tax portal and filing a revised or billed return under section 87A for the assessment year 2024-25.
Changes made in utilities before hearing in Bombay High Court
The Bombay High Court, while hearing the PIL filed by The Chamber of Tax Consultants last month, had given this order that taxpayers will be required to pay taxes in July 2024 for the financial year 2023-24 and assessment year 2024-25. For those who could not avail tax rebate, the date for filing income tax returns should be extended till January 15, 2025. CBDT had suddenly stopped giving tax rebate under Section 87A to those taxpayers who filed income tax returns after July 5, 2024, even though they were entitled to it. Taxpayers approached the court and now the Bombay High Court has given this order in its interim decision. The Bombay High Court will give its final decision in this matter on January 9, 2025.
Tax rebate on income from equity was stopped
From July 5, 2024, the tax department has suddenly banned income tax return filing utilities from short-term capital gains on equity shares or income from Equity Oriented Mutual Funds, which attract 15 percent tax. When this happened, tax rebate under section 87A was stopped. This decision of the Tax Department was also heavily criticized. But after the intervention of the court, the tax department has updated offline and online utilities so that taxpayers can get tax rebate.
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