Income Tax Deadline Time: The deadline to file revised and belated Income Tax Return (ITR) is approaching for FY 2023-24. Taxpayers have an important opportunity: to claim rebates under Section 87A. Only 2 days are left, till January 15, 2025, as mandated by the Bombay High Court. Here is everything you need to know to maximize your tax benefits.
High Court Decision: Relief for Taxpayers
The Bombay High Court gave a pivotal decision, in which the Income Tax Department was directed to extend the deadline to file revised and belated ITR. This extension is very important for those taxpayers who were not able to claim Section 87A rebate earlier due to software limitations.
Software changes in July 2024 made it difficult for taxpayers to claim rebate, especially those who had special income, such as short-term capital gains. Many taxpayers also received demand notices, which caused financial tension for them.
Help with updated ITR utilities
The Income Tax Department has now updated its ITR-2 and ITR-3 Excel utilities, through which taxpayers can now claim rebate. But keep in mind: the rebate amount will have to be manually entered in the utility before validation.
According to CA Pratibha Goyal, “The updated ITR utility allows taxpayers to claim rebates under the new tax regime, especially for special income such as short-term capital gains. But rebate calculation is not automatic, so taxpayers will have to maintain accuracy in entries.”
What is Section 87A Rebate?
Under Section 87A, eligible taxpayers get significant tax relief.
Old Tax Regime: Rebate up to ₹12,500 is available on total income up to ₹5 lakh.
New Tax Regime: Rebate up to ₹25,000 is available on total income up to ₹7 lakh.
This provision is a game-changer for taxpayers, as it can significantly reduce or eliminate their tax liability. But it is important to align calculations with eligibility criteria to avoid mistakes.
Experts Opinion
Updated utilities and extended deadline are important changes, but experts say that more steps should be taken.
CA Chirag Chauhan says, “The deadline should be extended to January 31 as the forms and utilities have been updated recently. CPC should process updated ITRs without taxpayers having to go to court.” They also suggest that there should be automated rectifications so that the refund of overpaid taxes is quick and taxpayers save time.
Steps to Claim Section 87A Rebate
Download Updated ITR Utility: Get the latest ITR-2 or ITR-3 utility from the Income Tax Department site.
Enter Rebate Amount Manually: Input the amount under Section 87A in the rebate column of the utility.
Validate ITR: Validate ITR after rebate entry so that there is no error.
File Revised ITR: File your revised return before the deadline of January 15, 2025.
Track Refunds and Notices: Monitor return status and respond to any notice from the department in a timely manner.
Hurry up, secure your benefits!
Time is running out fast, so file your ITR accurately and timely. Detail and precision are key to avail the Section 87A benefit.
File your revised ITR before the January 15 deadline and secure your tax benefits!
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