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Apr 05, 2025
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CAs, taxpayers push back after Income Tax dept sends rebate notices
Chartered accountants have approached the tax appellate authority on behalf of their clients after the Income Tax Department sent notices to people — mostly with total incomes below Rs 7 lakh — who revised their tax returns in January 2025 to claim rebate under Section 87A.
“We have observed a growing concern among taxpayers regarding the Income Tax Department's issuance of demand notices, particularly to individuals with total incomes below Rs 7 lakh who revised their ITRs in January 2025 to claim the Section 87A rebate,” said Amit Bansal, partner, Singhania & Co. (a law firm).
“Despite the Bombay High Court's directive allowing a revision window, the tax department has continued to deny the rebate on short-term capital gains (STCG) taxed at special rates, leading to unnecessary demand notices,” he said.
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