The ITAT has allowed Section 87A rebate on short-term capital gains taxable under Section 111A for taxpayers with total income within ₹7 lakh.
Revisiting Section 87A Rebate Eligibility
The ITAT ruled that the denial of a Section 87A rebate for tax payable at a special rate under Section 111A is not in accordance with the law, thereby allowing the rebate for taxpayers with a total income below ₹7 lakh under the new tax regime for Assessment Year 2024-25.
The tribunal's ruling marks a significant clarification regarding the eligibility of taxpayers claiming rebates on short-term capital gains (STCG). Specifically, it emphasizes that the income threshold does apply irrespective of the tax rate applicable to STCG, affirming taxpayer rights under the new legislative framework.
This decision is important for tax advisors and practicing professionals, as it provides clarity on rebate eligibility and ensures that qualifying taxpayers are not unfairly deprived of reliefs intended under the new tax provisions.
Citations
- ITAT (2026) 1448328
