#income tax rebate

ITAT Jaipur held that Section 87A rebate is available on short-term capital gains under the new tax regime, directing AO to allow Rs 25,000 rebate. This lets STCG earners under the new regime claim the rebate, cutting their tax outflow.

Taxpayers whose total income does not exceed Rs 7 lakh can claim the Section 87A rebate even on short-term capital gains that attract the special 15 % rate under Section 111A. The Jaipur ITAT reversed the CIT(A)’s refusal, confirming that the rebate applies to the computed tax liability irrespective of the special-rate provision. This benefits individual investors with modest incomes who realise short-term gains.