Bombay High Court has given big relief to such taxpayers! You will be able to file ITR till January 15, 2025

Income Tax Return Filing: The Bombay High Court has given big relief to those taxpayers who are entitled to get tax rebate under 87A of the Income Tax Act. The High Court has ordered the Central Board of Direct Taxes (CBDT) to extend the date for filing revised and belated income tax returns for such taxpayers till January 15, 2025. However, the Bombay High Court will give its final decision in this matter on January 9, 2025.

What is the whole matter?

The Chamber of Tax Consultants had filed a PIL in the Bombay High Court, on which the court has given this order to the CBDT. In July 2024, when taxpayers were filing income tax returns for the financial year 2023-24 and assessment year 2024-25, CBDT suddenly gave tax rebate under section 87A to those taxpayers who filed income tax returns after July 5, 2024. Stopped giving while they were entitled to it. Taxpayers all over the country approached the courts and now they seem to be getting justice from the Bombay High Court.

Bombay High Court has ordered to extend the date for filing revised and billed income tax returns from CBDT till January 15, 2025. The date for filing ITR will be extended only for those taxpayers who are entitled to claim tax rebate under section 87A. An interim decision of the Bombay High Court has come and the final decision will come on 9 January 2025.

Bombay High Court will give its final verdict on January 9

Income Tax Return Filing Utilities after July 5, 2024 Income from special income such as short-term capital gains on equity shares or income from Equity Oriented Mutual Funds, which is taxed at 15 percent The tax department stopped giving tax rebate under 87A. CBDT suddenly banned giving tax rebate under 87A on such income in utility software.

Whereas in the Finance Act of 2019, a provision was made to claim tax rebate under 87A if tax of Rs 12500 is levied on annual income up to Rs 5 lakh in the old tax regime. Whereas in the new tax regime, tax rebate of Rs 25,000 was being given under Section 87A if the annual income was less than Rs 7 lakh. The Chamber of Tax Consultants told the court in its petition that the purpose of tax rebate under Section 87A was to provide relief to low-income earners from the tax burden. And arbitrarily disabling 87A in utilities software weakens the intention of the legislature.

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