Why is the 87A rebate not applicable?

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.

What income is considered for section 87A?

If an individual earns ₹12 lakh as normal income, ₹60,000 as short-term capital gains, and ₹1 lakh as long-term capital gains, they qualify for the Section 87A rebate on normal income. The long-term capital gain is fully exempt as it is below ₹1.25 lakh.

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).

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.

Is it better to itemize or take standard deduction?

Taking the Standard Deduction might be easier, but if your total itemized deductions are greater than the Standard Deduction available for your filing status, saving receipts and tallying those expenses can result in a lower tax bill.

Is 87A rebate available for everyone?

What is rebate under section 87A for F.Y 2025-26 and who can claim it? ​​​​​​​​​​​​​​An individual who is resident in India and whose total income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A​. Rebate under section 87A is available in the form of deduction from the tax liability.

Why don't I qualify for the tax rebate?

Tax rebate eligibility

Generally, federal rebates are based on your tax return information on file with the IRS. Typically, rebates are limited by your income and family size. For example, a taxpayer with adjusted gross income (AGI) at or over a certain amount may be ineligible for a rebate.

How to claim rebate under 87A?

To claim a tax rebate under Section 87A for the financial year 2025-2026, follow these steps:

1. Step 1: Determine your Gross Total Income for the financial year 2025-2026.
2. Step 2: Subtract any tax deductions you are eligible for, such as those for life insurance policies, investments, and other tax-saving investments.

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 is the clarification on 87A rebate?

The Tribunal has clarified that Section 87A, as applicable for AY 2024–25, does not contain any express restriction for STCG under Section 111A, and therefore the rebate should be available where the total income does not exceed Rs. 7 lakh and the assessee has opted for taxation under Section 115BAC(1A).

Which category of taxpayer is not eligible for the section 87A rebate?

The section 87A rebate applies to senior citizen taxpayers. However, resident individual taxpayers falling under the super senior citizen category are not eligible for this rebate.

Are standard deduction and 87A the same?

Section 87A is a tax rebate that directly reduces the tax payable, while the standard deduction is a flat amount subtracted from taxable income, simplifying the tax calculation for salaried individuals and pensioners.

Is there any rebate under section 87A reddit?

The amount of rebate automatically filled in the Rebate u/s 87A column is Rs. 2379 (but there's an option to edit it) which is the tax calculated at normal rate.

What is the exemption under Section 87?

Section-87 provide for exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area and exemption of capital gains on transfer of assets in cases of shifting of industrial undertaking from urban area to any Special Economic Zone.

Who cannot claim rebate under section 87A?

Only resident individuals are eligible. Senior citizens above 60 years and up to 80 years of age are eligible to claim rebates under Section 87A. Super senior citizens above 80 years are not eligible to claim the rebate. The rebate is applicable to the total tax amount before applying the 4% health and education cess.

What is the rule 87A of ITR?

An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his total income with which he is chargeable for any assessment year, of ...

Who is not eligible for the 87A rebate?

Only the resident individuals are legible to avail rebate as per this section. Senior citizens above the age of 60 years and below the age of 80 can avail rebate u/s 87A. ISuper senior citizens above the age of 80 years do not hold eligibility to claim rebates u/s 87A.