Jobaaj Stories
The deadline for filing a revised income tax return (ITR) for the financial year 2023-24 (Assessment Year 2024-25) is January 15, 2025. This deadline extension is a result of an interim order from the Bombay High Court. The Court directed this extension to allow taxpayers eligible for the Section 87A tax rebate more time to claim their benefits, ensuring they can exercise their rights without facing any procedural delays.
What is the Section 87A Tax Rebate?
Section 87A offers a tax rebate to individuals with a total income of up to Rs 5 lakh. The rebate reduces their tax liability, providing significant relief for low-income taxpayers. However, due to various reasons, some taxpayers did not claim this rebate when they filed their original returns.
What Should Eligible Taxpayers Do?
While the Bombay High Court’s final judgment on the matter is expected to be delivered on January 16, 2025, eligible taxpayers are advised to file their revised ITR by the January 15, 2025 deadline. Failing to do so might mean missing out on the rebate, even if the court later rules in their favor.
Chartered Accountant Bimal Jain, founder of A2Z Taxcorp LLP, suggests that filing a revised return on time ensures that taxpayers can claim the 87A rebate. He adds that even if the court rules against taxpayers, the worst-case scenario would be receiving a demand notice from the tax department. On the other hand, if the ruling is favorable, those who filed revised returns will benefit from the rebate.
Expert Advice on Filing Revised Returns
Prabhakar K.S., Founder and CEO of Shree Tax Chambers, emphasizes that taxpayers should not wait for the final judgment. Instead, they should file their revised or belated returns by the midnight of January 15, 2025, to avoid losing the opportunity to claim the rebate.
Hardik Kakadiya, President of the Chartered Accountants Association Surat, advises those who did not initially claim the rebate under Section 87A to file revised returns now. He points out that taxpayers who had their ITR processed with demand due to not claiming the rebate can still revise their return to claim the benefit.
Conclusion
The extended deadline for filing revised ITRs offers taxpayers a valuable opportunity to claim the Section 87A tax rebate. While the Bombay High Court's final ruling is awaited, it is essential for eligible taxpayers to act before the deadline on January 15, 2025. Filing a revised return now ensures that they can claim the rebate, even if the court's decision is delayed or uncertain. Don’t wait—file your revised return today!
