income tax notice
income tax notice

Dear Income Tax Department
Please tell us clearly what is your stand regarding Section 87A rebate for AY 2024-2025 ITRs.

Many assessees have now received Intimation Orders on 24.02.2025 for demands – wherein Rebate u/87A has been disallowed against Special rate incomes during processing of the ITRs but same was duly allowed by your Utility while filing the ITR! (Screenshot-1)

Also, in cases where Intimation Orders were served in June, Rectification Orders have been served on 25.02.2024 in many cases with demands for disallowance of 87A Rebate against special rate incomes but same was duly allowed by your Utility and also in Original Intimation Order (Screenshot-2)

Taxpayers please note, the only option right now it seems is to file and Appeal to CIT(A) for Order u/143(1) or 154 – as the case may be, relying on the judgement of
Bombay High Court in the matter of The Chamber of Tax Consultants v Director General of Income Tax (Systems) – dated 24.01.2025.

What is even the use of modifying Utility after this Judgement, if you still are denying rightful claims to taxpayers in Intimation & Rectification Orders.