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87a under old regime

CA Aspirant (CA) (1459 Points)

20 July 2024

TOTAL INCOME= 482000, TAX NORMAL RATE = 3636 AND TAX STCG 111A= 11400
HOW MUCH 87A UNDER OLD REGIME ALLOWED??

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9 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 20 July 2024

After the recent upgrade of utility, just Rs.3636/-. No rebate over any tax charged at special rate.

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ANIL KUMAR KHETAN (PROPRIETOR) (542 Points)
Replied 20 July 2024

Allowed under old regime 12500 but new regime allows only 3636

CA Aspirant (CA) (1459 Points)
Replied 21 July 2024

@ dhirajlal what about in old regime

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 21 July 2024

It was allowed till second version utility. But CPC has clarified that it will not be allowed even in Old tax regime. So, check if it is allowed even today.

ANIL KUMAR KHETAN (PROPRIETOR) (542 Points)
Replied 21 July 2024

Calculator Under new software from 5th July 2024 tax rebate 87A allowed under Old Scheme. Sofware not change old scheme, only change in new tax regime.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 21 July 2024

Those already filed ITR with the claim under old regime are waiting for their ITR to be processed.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 08 December 2024

The case of **Beena Manishbhai Fofaria vs. CIT (Appeals)** revolves around the application of **Section 87A** of the Income Tax Act, especially after the amendments brought by the Finance Act, 2023.

In this case, the taxpayer filed her return for the Financial Year 2023-24, declaring a total income of Rs. 6,93,260, which included short-term capital gains (STCG) of Rs. 65,066. She claimed a rebate of Rs. 20,010 under Section 87A, as her total income was under Rs. 7,00,000. However, the Centralized Processing Centre (CPC) restricted the rebate to Rs. 10,250, disallowing the rebate on STCG. This led to a reduced refund amount, prompting the taxpayer to file an appeal.

The CIT (Appeals) ruled in favor of the taxpayer, stating that the Finance Act, 2023, permits a rebate on total income (excluding long-term capital gains taxed under Section 112A) if the total income is within Rs. 7,00,000. The ruling confirmed that short-term capital gains are eligible for the rebate if the total income is under Rs. 7,00,000.

This case is significant as it clarifies the application of Section 87A and benefits many taxpayers.

Umesh Kajrolkar (Manager - Corporate Taxation) (43 Points)
Replied 19 December 2024

Thank you sir for providing the solution. I have the same case where 87A rebate not allowed. I request you to please let me know how will we proceed with this ?? In my case i got demand in Intimation 143(1) and website doesn't allow me for rectification for so many days. Menwhile the period for 30 days for rectification and Appeal is passed.

So please guide us, how to proceed with the fevorable order to delete the demand appearing in Intimation 143(1). ????