Held that there exists no express bar either in S. 87A or s. 111A for denial of rebate in respect of tax payable on short-term capital gains at special rates under S. 111A; subsequent amendment made by the Finance Act, 2025, which is prospective in nature, clarifies that no such restriction was in force during the asst. yr. 2024-25; assessee is eligible for rebate under S. 87A for asst. yr. 2024-25 even though the income includes STCG taxable under S 111A and the assessee has exercised option under S. 115BAC. (AY. 2024-25)
Jayshreeben Jayantibhai Palsana v. ITO (2025) 237 TTJ 817 / 177 taxmann.com 411 (SMC) (Ahd)(Trib)
S.87A: Rebate on Income-tax in case of certain individuals-Tax on short-term capital gains-Computation of income under S. 115BAC-Amendment made by the Finance Act, 2025 supports the view that under the unamended provision applicable for asst. yr. 2024–25, rebate under S 87A cannot be denied merely because tax arises under s. 111A-The assessee is eligible for rebate under s. 87A for asst. yr. 2024-25 even though the income includes STCG taxable under s. 111A[S. 111A,112A(6), 115BAC]
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