Mumbai CIT(A) Allows Section 87A Tax Rebate on Short-Term Capital Gains

The Mumbai Commissioner of Income-Tax (Appeals) [CIT(A)] ruled that taxpayers can claim the Section 87A rebate on short-term capital gains (STCG) under Section 111A, overturning tax department restrictions. 

A taxpayer, who filed ITR under the new tax regime, was denied a ₹16,422 rebate, prompting an appeal. The CIT(A) ruled that no law explicitly bars this rebate on STCG, unlike long-term capital gains under Section 112A.

Experts say this ruling strengthens taxpayers' rights, but the Income Tax Department may appeal or issue clarifications. Taxpayers facing similar issues should file appeals to claim the rebate.