Question ID :
44802
87A rebate on long term capital gain on sale of land
We have filed a return for F.Y.2023-2024 by claiming Rs.25000 87A on long term income capital gain on sale of land Rs.298000 in addition to regular income of Rs.360000. . But 87A not allowed on capital gain. Even after filing revised return the position is same. What action to be taken
Posted by
CA ATUL TOSHNIWAL
on
Feb 25, 2025
Filed Under
DIRECT TAXES
Since Section 87A rebate is not available on tax payable on long-term capital gains under Section 112, the rebate of ?25,000 you claimed was correctly disallowed. Even after filing a revised return, if the tax computation remains the same, the following actions can be considered:
Verify Computation: Ensure that the return computation aligns with income tax provisions. The rebate under Section 87A is available only if the total taxable income (excluding LTCG taxed under special rates) is within the specified limit.
Check Revised Return Processing: Sometimes, even after revising, the system may not update immediately. Track your revised return status on the income tax portal.
File a Rectification Request (U/S 154): If the tax department has not updated the revised return, you can file a rectification request through the income tax portal.
Respond to Tax Demand (if any): If a tax demand is raised due to this disallowance, either accept it and pay the tax or file a rectification request if you believe an error has occurred.
Posted by
CA. JHA SHANKAR KUMAR on
Feb 27, 2025
Answer ID :
85714
You have to pay tax on capital gain
Posted by
CA JEET REWRI on
Mar 07, 2025