INCOME TAX11 Sept 2026
Section 87A rebate on STCG: ITAT ruling offers relief to taxpayers under new tax regime for AY 2025-26 | Mint
Delhi's Income Tax Appellate Tribunal has held that you can claim the full ₹25,000 Section 87A rebate against short-term capital gains tax under Section 111A for AY 2025-26. The Finance Act 2025 restriction on special-rate income only starts from AY 2026-27. This helps taxpayers whose total income stayed within the ₹7 lakh limit under the new tax regime. Check your intimation before accepting any demand.
Key Statutory Highlights
- ITAT Delhi held that the full ₹25,000 Section 87A rebate is available against tax on short-term capital gains under Section 111A for AY 2025-26.
- The tribunal said the Finance Act 2025 restriction on special-rate income applies only from AY 2026-27 onwards, so it does not cover AY 2025-26.
- The tribunal set aside the Section 143(1) intimation and deleted the ₹25,840 tax demand raised after the rebate was cut to ₹3,500.
Actionable Advice for Taxpayers / Founders:If you filed for AY 2025-26 under the new tax regime and the CPC reduced your Section 87A rebate on STCG, review your intimation and discuss your options with your CA, as the outcome depends on your own facts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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