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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.
ITAT Ahmedabad ruled that the Section 87A rebate cannot be denied on short-term capital gains taxed at the special rate under Section 111A for AY 2025-26, overturning the Addl. CIT’s reliance on CBDT circular 13/2025. Taxpayers with STCG can now claim the full ₹25,000 rebate, extending relief beyond other income sources.
ITAT ruled that the rebate under Section 87A can be claimed on tax payable on short-term capital gains taxed under Section 111A even when the assessee opts for the new tax regime (Section 115BAC). The decision confirms eligibility for AY 2024-25, benefiting taxpayers with STCG.
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.
ITAT Pune holds that the rebate under Section 87A of the Income Tax Act extends to short-term capital gains (STCG) taxable under Section 111A, even for assessees opting for the new tax regime. The ruling overturns CPC's denial of the full rebate, reinforcing that tax rebates must be applied to all eligible income heads without arbitrary restrictions.
ITAT Surat rules that rebate under Section 87A is available on short-term capital gains taxed at 15% under Section 111A, even for assessees opting for the new tax regime (Section 115BAC), provided total income does not exceed ₹7 lakh. This clarifies a critical ambiguity for taxpayers navigating the interplay between rebate provisions and capital gains taxation.