Section 87A rebate has raised confusion, especially for taxpayers with capital gains.
Published in CNBC TV-18 | March 2025
"CBDT has suo-moto in the ITR Utility portal denied benefit of rebate under Section 87A on such short-term and long-term capital gains, creating a controversy.
Some taxpayers believe that rebate under Section 87A should be available on the total income, including capital gains. In fact, some CIT(A) rulings have favoured this interpretation. Until the matter is resolved legislatively or judicially, taxpayers should contest the denial and file appropriate responses.”- Gaurav Jain, Partner, Direct Tax