HC pulls up I-T dept for software: Taxpayers can now claim 87A tax rebate

The Bombay High Court ruled this week that the Income Tax Department (ITD) was wrong in arbitrarily modifying its utility software to deny rebates on special rate incomes after July 5, 2024.

The court asked the department to rectify the Income Tax returns (ITR) utility software and process all valid Section 87A rebate claims. Taxpayers with a taxable income of up to Rs 5 lakh under the old tax regime or up to Rs 7 lakh under the new tax regime can avail of the rebate, reducing their liability to zero.