Good news for taxpayers: ITR forms to allow 87A tax rebate claims have now been updated however there is a catch
section 87A tax rebate but were prevented from claiming it post July 5, 2024. The Income Tax Department has now updated 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 department also said the HTML utilities will be made available shortly. This information was mentioned by the Income Tax Department in the late hours of yesterday.
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The only catch is you have to manually edit the tax rebate column in the ITR excel utility and then validate it in order to claim section 87A tax rebate. If you leave the tax rebate column to be auto filled then you won’t get 87A tax rebate, say experts who tried all possible permutations and combinations. However, this manual editing option although seems to work for the time being needs more clarity, says experts.
If you recall the whole section 87A tax rebate mess started when the tax department changed the ITR software on July 5, 2024. As a result of this many eligible taxpayers were either prevented from claiming section 87A tax rebate or were sent a tax demand notice for claiming it. In this regard the Honorable Bombay High Court gave an interim relief by ordering the tax department to extend the revised and belated ITR filing deadline to January 15, 2025 to enable taxpayers to claim 87A tax rebate.
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