New Delhi: The Income Tax department has shared that taxpayers who were unable to file their ITR correctly in the absence of the Section 87A rebate option can now do so. This comes after a Bombay High Court verdict directed the Income Tax department to extend the tax filing deadline in such cases.
After announcing an ITR filing deadline extension, the Income Tax department has announced that taxpayers will soon be able to file correct ITRs using updated forms 2 and 3 which allow rebate under Section 87A of the Income Tax Act, 1961.
This will be allowed for ITR related to financial year 2023-24. The Bombay High Court in a verdict directed the Income Tax department to extend the date for Income Tax filing in response to a petition by taxpayers who claimed that they were unable to file correct ITRs since the functionality for rebate under Section 87A of the I-T Act was not available on the tax e-filing platform.
What is Section 87A of Income Tax Act?
Section 87A of the Income Tax Act, 1961, allows rebates to taxpayers whose income is below a certain tax threshold. Under the new tax regime, taxpayers can avail of a tax rebate on an income of up to Rs 7 lakh. Under the old tax regime, taxpayers can avail of the rebate on an income of up to Rs 5 lakh.
CBDT extends the last date for furnishing Belated/ Revised return of income for AY 2024-25 in the case of Resident Individuals from 31st December, 2024 to 15th January, 2025.
✅Circular no. 21/2024 dated 31/12/2024 issued-https://t.co/DedADMfnGX pic.twitter.com/sBVdGZqxRF
— Income Tax India (@IncomeTaxIndia) December 31, 2024
According to the Bombay High Court verdict, eligible taxpayers are allowed to filed revised or belated ITR for rebate under Section 87A. The Central Board of Direct Taxes in a notification extended the tax deadline until January 15, 2025.
ITR FIling: The Income Tax department announced that revised ITR filing will soon be available to taxpayers who wish to seek rebate 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
