Rebate under Section 87A allowable on special income under new tax regime: Appellate Authority
Recently a controversy is going on regarding allowability of rebate under Section 87A on special income under the new tax regime from A.Y. 2024-25, resulting in issuance of demand notices to large number of small taxpayers.
In my own case (my mother’s case), rebate u/s. 87A was not allowed by the department under the new tax regime on capital gain on shares, against which I filed an appeal before the first appellate authority [CIT(A)]. The CIT(A) after thoroughly going through my submissions, allowed the appeal holding that rebate u/s. 87A is allowable on total income (including special income like capital gain) under the new tax regime.
Though I was expecting an unfavorable order from CIT(A) so as to represent the case before ITAT and set a binding precedent, a favourable order from CIT(A) sets the stage for other assessees to file an appeal, get their demands deleted and avail the rebate in the succeeding years under the new tax regime till the time department brings in a specific amendment in the law.
Here I am attaching the order of CIT(A) in my mother’s case consisting of my written submissions which may be helpful to other assessees to represent their case before CIT(A).
