New Delhi: The Bombay HC provided relief to certain taxpayers allowing them to file their Income Tax return until January 15, 2024. The allowance pertained to tax rebates under Section 87A of the Income Tax Act. The Bombay HC provided relief to taxpayers who were denied rebates under section 87A despite being eligible for it. These taxpayers filed their ITR after July 5, 2024.
The Bombay HC directed the Central Board of Direct Taxes to notify the extension of the belated ITR filing deadline to January 15, 2024, for taxpayers who were eligible for rebate under Section 87A of the I-T Act. The Bombay High Court will pronounce its final verdict on January 9, 2024.
What is Section 87A of I-T Act?
Section 87A of the Income Tax Act provides relief to taxpayers whose income is Rs 5 lakh and Rs 7 lakh under the old and new tax regimes, respectively. The CBDT disabled functionality that allowed taxpayers to avail of tax rebates under Section 87A on the Income Tax portal. This includes short-term capital gains on certain shares as well as equity-focused mutual funds that are taxable under Section 111A of the Income Tax Act at below 15 per cent, the ET reported, citing Bombay CA Society president Anand Bathiya.
Taxpayers can claim up to Rs 12,500 rebate on incomes up to Rs 5 lakh under the old tax regime. Relief under the section was capped at Rs 25,000 for taxpayers under the new tax regime on incomes up to Rs 7 lakh.
Section 87A also allows taxation of up to 10 per cent long-term capital gains tax on the sale of of shares or equity mutual funds. Providing interim relief to taxpayers, Bombay High Court Chief Justice Devendra Kumar Upadhyaya and Justice Amit Borkar said that procedural changes in the tax filing utility cannot override.
ITR Filing deadline extended for taxpayers after Bombay HC provided interim relief to individuals who filed a PIL. Taxpayers claimed relief under Section 87A of the Income Tax Act. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
