Errors in Income Tax Utilities that warrant urgent action!
✅ Rebate u/s 87A is restricted in 112A income only and not for any other special rate income (both in New & Old Regimes)
✅ Prior years’ Loss from House Property should be allowed to c/f in next years if assessee has opted New (Default) Regime.
✅ Saving accounts should be allowed in ITR-5 & ITR-7 forms as Trust & Societies can have saving bank accounts.
issue in Income tax Utility & Portal !!
Request@IncomeTaxIndia @FinMinIndia @theicai and all the professionals (who gets deeply moved at forced unfairness) to please go through this
– Post 5th July update ITR online utility is not giving benefit of S.87A rebate for STCG on shares u/s 111A and other special rate income. Before 5th July IT utility and Calculator were allowing 87A rebate against STCG u/s 111A and other special rate incomes other that LTCG u/s 112A where such rebate is specifically barred by S.112A itself-PIC1
– IMO this is incorrect system behavior which shall be rectified at the earliest considering the huge number of impacted assesses.
There is also one grievance resolution from Income Tax Helpdesk is doing rounds which says that proviso to 87A restricts the rebate on special rate income, hence not allowed for STCG u/s 111A –PIC2
In this writeup we will see the reasons as to how suddenly restricting the rebate is grossly wrong:-
1) Budget Speech 2023 – Hon. FM Nirmala Sitharaman declared increase in rebate from 12500 to 25000 in case of new regime as a booster benefit for Taxpayer, without adding any additional restriction. Till AY 23-24 87A rebate was being allowed for S. 111A STCG income and other special rate income (except LTCG u/s 112A)
Excerpt from Budget Speech:-
Page 33, Page 35 and the Video of Speech
