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Not able to avail Rebate Under 87A in ITR2 even though Aggregate Income less than 5 lakh

20 July 2023

Hi All,

Filing ITR 2, I have LTCG on sale of shares for Rs 29,916. My aggregate income comes to only Rs 4,78,932. When LTCG is added to it, Total Income comes to Rs 5,08,848.

There is no tax on LTCG since it is less than 1 lakh. Shouldn't I get benefit of Rebate Under Section 87A since my Aggregate Income is less than 5 lakh ? Why is the Rebate showing as Rs 0 and I am asked to pay Rs 11,447 as tax ? Can anyone explain ?

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18 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 20 July 2023

YOU ARE CORRECT.

THAT IS DEFECT IN THE UTILITY. WE HAVE ALREADY FILED GRIEVANCE. WAITING FOR UTILITY UPGRADATION.

YOU TOO CAN FILE COMPLAINT.

1 Like

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 July 2023

Sir,
Why this time have many more problems in ITR...???

1 Like

Mudassar Nath (Manager) (51 Points)
Replied 20 July 2023

Rebate under Section 87A cannot be adjusted against tax on long-term capital gains on equity shares and equity-oriented mutual funds (Section 112A).

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 20 July 2023

This time the response to your grievances (problem faced by assesses) is not heard. They were already late to release the utility. Offline utility for ITR 5 is just released few days back, which is not totally error free. We have already reported the above said error on 4th July (utility 1.1.3 released on 3rd July), but no upgradation.

The reply to your grievances are just random ... we got reply submit your PAN TAN etc for the said query, which is totally funny when you file grievance after login to your profile.

Don't understand the behavior.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 20 July 2023

Originally posted by : Mudassar Nath
	Rebate under Section 87A cannot be adjusted against tax on long-term capital gains on equity shares and equity-oriented mutual funds (Section 112A).

The querist doesn't have long term capital gain after considering the exemption limit u/s. 112A IT act.

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Ajesh G.S (23 Points)
Replied 21 July 2023

I have also raised grievance. Not heard anything back. What happens if they do not resolve the issue before July 30th? Do I pay the tax and file? How will i get the refund in that situation?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 21 July 2023

The solution to problem no one knows. Better to pay tax and file return before due date (though extension of date is likely). Yes, you can revise the return by 31st December, and claim the excess paid, if needed.

Ajesh G.S (23 Points)
Replied 21 July 2023

Thank You for that information.

1 Like

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 21 July 2023

My Pleasure.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 23 July 2023

This is to inform that the defect has been resolved by now. New upgraded version of utility has been released today.

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Ajesh G.S (23 Points)
Replied 24 July 2023

Hi,

For me it still shows Rebate under Section 87A as 0. I gave confirmation again for each section. Should i try filing a fresh return ?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (178199 Points)
Replied 24 July 2023

The defect has been removed in new version. Have you downloaded new utility?

If yes, then file ONLINE.

Ajesh G.S (23 Points)
Replied 25 July 2023

I downloaded the new Utility and tried filing. Again, getting the same issue. Even though my Aggregate Income is below 5 lakhs, I am not given Rebate under Section 87 A.