Income Tax: Under the old income tax regime, taxpayers whose annual income is up to Rs 5 lakh are entitled to a rebate of Rs 12,500. Taxpayers who use the new income tax regime are allowed a rebate of up to Rs 25,000
Income Tax: There is good news for those taxpayers who could not claim rebate under section 87A of Income Tax in July 2024. The Income Tax Department has said that it will soon update the tax return-filing utilities for ITR 2 and ITR 3. After this, taxpayers who could not avail the rebate in July 2024 will be able to claim the rebate.
Special rebate in new and old income tax regime
Under the old regime of Income Tax, taxpayers whose annual income is up to Rs 5 lakh are entitled to a rebate of Rs 12,500. Taxpayers who use the new regime of Income Tax are allowed a rebate of up to Rs 25,000. During the filing of income tax returns in July last year, there were many taxpayers who could not get the benefit of rebate. For example, if a taxpayer’s income from salary was Rs 5 lakh and there was a short term capital gain of Rs 2 lakh from the sale of shares in FY24, then he was entitled to tax rebate under section 87A.
Many taxpayers were not able to claim special rebate in July
If such a taxpayer had filed the return before July 5, 2024, he got the benefit of rebate. But, due to software update after July 5, such taxpayers did not get the benefit of rebate on short term capital gains. Due to this, he did not get the benefit of rebate on the salary part of the total income. Despite the request of chartered accountants and taxpayers in this regard, the Income Tax Department did not give any relief. But, on December 20, the Bombay High Court had asked the Income Tax Department to give at least 15 days’ time to give relief.
Deadline for filing belated returns extended to January 15
On the order of the Bombay High Court, the Income Tax Department has extended the deadline for filing belated and revised returns to January 15. Now the Income Tax Department has said that it will update the utilities for ITR 2 and ITR 3 soon. This means that taxpayers who could not avail the rebate in July 2024 can now avail it till January 15. But, this will not be automatic. Taxpayers will have to revise their returns for this by January 15.
You can revise the return even after getting the refund
If your return has been processed and you have received a refund or have paid additional tax, you can still revise your income tax return till January 15. Experts say that a large number of taxpayers will benefit from the Income Tax Department extending the date for filing belated or revised returns.
