New Delhi: The taxpayers eligible to claim section 87A tax rebate can now update the excel utilities for ITR Forms 2 and 3 to exercise the option to update tax rebate under section 87A for FY 2023-24 (AY 2024-25).
“The updated excel utilities for ITR Forms 2 and 3 to exercise the option to update rebate u/s 87A for AY 2024-25 are now available. The HTML utilities will be made available shortly,” Income Tax website mentioned.
The taxpayers were expecting that the updated ITR forms would be free of earlier glitches and they could easily claim the Section 87A rebate on short-term capital gains (STCG) income. It may be noted that the e-filing utility is accepting the claims, however, the processing software continues to reject them due to outdated logic. The Economic Times reported at present the taxpayer needs to manually edit the tax rebate column in the ITR excel utility and then validate it in order to claim Section 87A tax rebate. However, if the individual leaves the tax rebate column to be auto filled then the person will not get 87A tax rebate.
Manual Input Required for Section 87A Rebate Claim
It may be noted that eligible taxpayers who were prevented from claiming section 87A tax rebate can now claim section 87A tax rebate by filing a revised or belated income tax return (ITR). The only catch is the taxpayers have to manually edit the tax rebate column in the excel ITR utility to claim section 87A tax rebate if special rate income like short term capital gains (STCG) exists.
Meanwhile, the Income Tax department stated that the option to file updated ITR forms 5, 6 and 7 for the AY 2024-25 have been made available from January 1, 2025.
The CBDT had issued a circular dated December 31, 2024 announcing the extension of due date for furnishing belated/revised ITR for AY 2024-25 in case of resident individuals from 31st December, 2024 to 15th January, 2025.
The Income Tax Department has released updated Excel utilities for ITR Forms 2 and 3, enabling taxpayers to claim the Section 87A tax rebate for AY 2024-25. Previously, software glitches prevented successful claims. Taxpayers must manually edit the tax rebate column in the Excel utility, particularly for income types like short-term capital gains (STCG), to ensure the rebate is correctly applied. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
