Income Tax Return Filing: Taxpayers can now avail tax rebate for assessment year 2024-25 by filing revised or belated return under section 87A on the income tax portal.
Income Tax Rebate: There is news of relief for those taxpayers who could not get tax rebate under section 87A while filing income tax return for the financial year 2023-24 and assessment year 2024-25. To enable such taxpayers to get tax rebate by filing revised or belated returns again, 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 going to the income tax portal and filing income tax return again for assessment year 2024-25.
Taxpayers will be able to claim tax rebate under 87A
The Income Tax Department has shared this information on its online return filing portal and said that offline and online utilities have been updated for ITR Forms 2 and ITR Forms 3. According to the tax department, taxpayers can now use this option to get tax rebate by filing revised or belated returns under section 87A by visiting the income tax portal for the assessment year 2024-25.
Changes made in utilities before hearing in Bombay High Court
The Bombay High Court, while hearing a PIL filed by The Chamber of Tax Consultants last month, had ordered that the date for filing income tax returns for taxpayers who could not get tax rebate for the financial year 2023-24 and assessment year 2024-25 in July 2024 should be extended till January 15, 2025. Taxpayers who filed income tax returns after July 5, 2024 were suddenly stopped by the CBDT from giving tax rebate under section 87A even though they were entitled to it. The taxpayers approached the court and now the Bombay High Court gave this order in its interim decision. The Bombay High Court will give its final decision in this matter on January 9, 2025.
Tax rebate was stopped on income from equity
From July 5, 2024, the tax department suddenly stopped giving tax rebate under section 87A on short term capital gains on equity shares or income from equity oriented mutual funds which is taxed at 15 percent in the income tax return filing utilities. This decision of the tax department was also heavily criticized. But after the intervention of the court, the tax department has updated the offline and online utilities so that taxpayers can get tax rebate.
