Can we claim an 87A rebate in an updated return?
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No, you generally cannot claim or increase an 87A rebate in an updated return (ITR-U) if the result is a reduction in your tax liability or an increase in your refund. The purpose of an updated return is to declare more income and pay additional tax, not to reduce your tax burden.
Can we claim a rebate in an updated return?
An updated return cannot be filed if it decreases the total tax liability determined based on an earlier return. An updated return cannot be filed if it results in a refund or increases the refund previously due on the basis of an earlier return.
What is the 87A rebate for updated return?
As per the old regime of the Income Tax Section 87A 1961, you can claim a rebate of ₹12,500 on your tax liability. According to the new tax regime, the rebate limit is now ₹60,000 for those with taxable income up to ₹12 lakh.
What are some common mistakes while claiming 87A?
Q9: Are there any common mistakes to avoid while claiming Section 87A? Common mistakes include underreporting income, failing to disclose all income sources, or missing eligible deductions. Ensure your total taxable income remains under ₹5 lakh to qualify for the full rebate.
Can we get a refund on an updated return?
Can we claim refund in updated return 139 8A? Amended returns cannot be used to decrease tax liabilities, seek refunds, or enlarge losses. Section 139(8A) restricts taxpayers to filing a single amended return per assessment year.
Income Tax Refund? Refund Not Received? ITR REFUND PROCESSING LATEST UPDATE | जून जुलाई के आये रिफंड
Does an updated return affect my refund?
If you file an amended return, you should still get the refund figured on the original return. Then, if your refund is larger due to the change, you'll get the difference between the original and amended amounts.
What are the rules for updated return?
ITR-U or Updated ITR is to be filed in Form ITR-U which has been prescribed under Rule 12AC of the Income Tax Act. In enables a taxpayer to file/update the tax returns within 2 years from the relevant assessment year. For example, Updated ITR for AY 2023-24 can be submitted till March 31, 2026.
What is the 87A rebate glitch?
Rebate under Section 87A of the Income Tax Act
Provides relief to small taxpayers by lowering or eliminating tax liability for modest incomes. Due to technical glitches and incorrect assessment, the Section 87A rebate was mistakenly applied to some special-rate incomes.
How do I claim 87A while filing ITR?
Claim the Rebate: When you fill out your ITR, you will come across a section where you can claim Section 87A rebate. Enter the amount of rebate you are eligible for, which is ₹12,500 if your taxable income is below ₹5 lakh.
Why am I not getting a rebate under 87A?
New tax regime: “The ITR utility does not allow automatic 87A rebate when the total income exceeds Rs 7 lakh includes special rate income like STCG under Section 111A or LTCG under Section 112A. The rebate can only be claimed if the slab-rate income alone is within the Rs 7 lakh limit.
What are the conditions for an 87A tax rebate?
Eligibility Criteria for Section 87A Rebate 2025
Under the new tax regime: income should not exceed ₹12,00,000. Under the old tax regime: income should not exceed ₹5,00,000 after claiming deductions under Sections such as 80C, 80D, or 80G.
How to calculate rebate US 87A in new tax regime?
Calculate your Tax Payable as per Income Tax slabs. The amount of rebate is tax calculated or Rs 25000/12500, whichever is lower ( if your total income does not exceed Rs 7 lakhs in the case of the new tax regime and Rs. 5 lakhs in case of the old tax regime.)
Can I appeal if my 87A rebate is denied?
Vasudevan says: “The Circular empowers CPC to issue rectification orders and raise tax demand in cases where 87A rebate has been allowed to the taxpayers. However, the taxpayer receiving such notice, can litigate the matter by filing an appeal before Commissioner of Income-tax (Appeals).
What happens after I file an updated return?
If you amend a return for tax years 2021 and later, you can request your refund by direct deposit. Enter your bank account information on the electronically filed Form 1040-X or corrected Form 1040-SS/PR. If you submitted a paper version of Form 1040-X, you'll receive a paper check.
Is section 87A rebate available for all taxpayers?
Only resident individuals are eligible to avail rebate under this section. Rebate under Section 87A is available to taxpayers whose income does not exceed: Rs. 7 lakh under the new tax regime and. Rs. 5 lakh under the old regime.
Why is rebate not allowed in the new tax regime?
Under the new regime, the rebate limit is ₹60,000 for resident individuals whose normal income does not exceed ₹12 lakh. This rebate applies only to tax on income taxed at slab rates. Income taxed at special rates, such as short-term and long-term capital gains, cannot be reduced using this rebate.
What is the clarification on 87A rebate?
Section 87A provides eligible taxpayers with a full income tax rebate if their total income is below Rs 5 lakh under the old tax regime. As proposed in Budget 2025, this rebate will be available if total income does not exceed Rs 12 lakh.
Who has to file 10iea in income tax?
Form 10-IEA is a declaration made by the return filers for choosing the 'Opting Out of New Tax Regime'. An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income must submit Form 10-IEA if they wish to pay income tax as per the old tax regime.
Can I file a revised ITR in a new tax regime?
All taxpayers can file a revised return if they submitted their original return by the due date and verified it within 30 days. A belated return or a previously filed revised ITR can also be revised. Remember, revised returns must be filed by the due date of December 31 of the assessment year.
What is the maximum amount of 87A rebate?
Further, a maximum rebate of Rs. 60,000 is allowed under section 87A from the amount of income tax on total income, which is chargeable to tax under section 115BAC(1A). However, this rebate is allowed if the total income of assessee chargeable to tax under section 115BAC(1A) is up to Rs. 12,00,000.
What is the filing deadline for Section 87A tax rebate?
ITR filing deadline: Last date to claim Section 87A tax rebate; do it now by filing revised ITR on or before January 15, 2025. Income tax deadline: The last date to file a revised income tax return (ITR) is January 15, 2025 as per the order of the Honourable Bombay High Court.
What are the disadvantages of updated returns?
In an updated return, you cannot file a nil or loss return, or claim or increase the tax refund amount. Given these drawbacks, you must – as far as possible – file your income tax return on time and correctly.
What is the difference between updated ITR and revised ITR?
If you made a mistake while filing your ITR and want to rectify it, you can choose to file a revised ITR. Similarly, if you made a mistake or underreported income in previous financial years, you can file an updated ITR upto 2 years from the end of the relevant financial year.