IT dept has sent tax demand of Rs. 25k disallowing 87A rebate (as other income was there along with STCG), although it was allowed while filing ITR.
Is there any nidification/update from IT dept regarding this after 24th Feb 2025? (many got same demand on that day).
Is there a way to request for reconsider without triggering re-assessment?
Hello @Shubhabrata_Naha
The Income Tax Department extended the due date for filing returns after a Bombay High Court decision allowing the rebate for FY 2024-25 on income from STCG, but they are still not granting it while processing returns. There have been no new notifications from the Income Tax Department regarding the disallowance of the Section 87A rebate.
You can submit a rectification request under Section 154 on the Income Tax e-filing portal through Services → Rectification → Re-process.
If the rectification request does not resolve the issue, you may also file a grievance on the portal.
While the CIT(A) has ruled in favour of allowing the Section 87A rebate on STCG income in some cases, this is not a general rule, so taxpayers may need to appeal individually.
Hope this helps!
My query is - When option contract is exercised on Expiry day, we need to give physical delivery of stocks from our Demat Holding to broker for physical settlement. Is giving physical delivery of stocks consider as Capital Gain/loss or F&O income?
As Giving physical delivery from Demat Holding is considered as “Sale of stocks”.
So, is it needed to report in ITR as Capital income or F&O income ?