The Nagpur bench of the Income Tax Appellate Tribunal (ITAT) has sustained a taxpayer claim for a ₹23,494 rebate under Section 87A on short-term capital gains taxed under Section 111A for the assessment year 2025-26.
The Department’s challenge to the rebate was rejected, with the tribunal ruling that there is no explicit prohibition in the relevant provisions that would bar the 87A relief for STCG arising under 111A.
Key details
- Revised amount: ₹23,494 claimed under Section 87A
- Applicable period: Assessment Year 2025-26
- Tax computation: Short-term capital gains under Section 111A
What this means for taxpayers
- Clarifies that Section 87A relief can apply to short-term gains taxed under Section 111A in AY 2025-26, where a rebate had been disputed.
- May influence similar pending refund requests and department challenges in other cases.
For more details, consult the official ITAT order or tax advisories.
