Last Chance to claim Income Tax Rebate u/s 87A:

Last Chance to claim Income Tax Rebate u/s 87A The due date for filing a Revised/Belated Income Tax Return (ITR) for FY 2023-24 is 15th January 2025. This due date was extended from December 31, 2024, to January 15, 2025, on an interim order of the Bombay High Court to ensure that all taxpayers eligible for the rebate under Section 87A are allowed to exercise their statutory rights without facing procedural impediments. This miss, if you miss revising your ITR, you will miss the chance to claim the Income Tax Rebate. As a result, the Income Tax utility was also updated by the Income Tax Department to claim the Income Tax Rebate. The whole issue started on 5th July 2024 when an update was made in the ITR Filing Utility, which did not allow income tax rebates in the New Tax Regime on special incomes like Short Term Capital Gain. Also the ITRs that were filed before 5th July 2024 allowed income tax rebates under New Tax Regime on special rate incomes and the same were processed with the Income Tax Demand. In this matter a Public Interest Litigation (PIL) is filed by the The Chamber of Tax Consultants against the modification in the Income Tax return utility with effect from 5th July 2024, which prevented the resident individuals from claiming the rebate under section 87A of Income Tax, 1961. As a result, the court gave an interim order in which taxpayers who filed the ITRs after 5th July 2024, can take rebate benefits on special rate incomes by revising their Returns. In this matter, the final order of the Bombay High Court is due on 14th January 2025.