87a Tax Rebate on new and old tax regime

Income Tax
1

I am freelancer and having STCG from stocks. When I tried to file ITR-3 (under the new tax regime) using the ITR website, it showed a 20% tax on my STCG even though my total income is ₹4.8 lakh, including STCG. My tax liability is about ₹20000, including an interest penalty for not paying advance tax on STCG. I am not receiving the Section 87A rebate on New tax regime. What should I do? Should I pay the tax now and appeal for a refund, or switch to the old tax regime to reduce my tax liability?. Last year I filed ITR4 under New tax regime.

2

Rebate under Section 87A is not allowed on Capital Gain ( STCG or LTCG ) in New Regime.

3

Hi @B_Mathew

It depends on when you sold the shares before 23 july or, on or after 23rd July, for STCG and LTCG calculation many are making mistakes in this regard. Your rate of 20% maybe incorrect.
Also, I have a view that interest for non deposit of advance tax is not applicable, in your case.

You can connect with me over whatsapp/ call as well, on 9999616874.

Regards,
CA Raman