The last day (the belated deadline) for filing your income tax return (ITR) for the assessment year 2024-25 is Wednesday, January 15, 2025. This came to pass after the Income Tax Department renewed its extension for filing for the second time after the previous deadline of December 31, 2024.
One the critical aspects of this has been Section 87A of the Income Tax Act,1961.
What exactly is section 87A? This section of the Income Tax Act allows taxpayers to reap the benefits of the rebate system.
A rebate is a partial refund on tax, that is provided by the government.
Are You Eligible For This Rebate?
This system is designed to cater to a specific threshold. Individual taxpayers whose annual income is below the designated threshold are eligible for Section 87A reimbursement.
Individual taxpayers who have taxable income of up to Rs 7 lakh can attain the rebate under Section 87A.
When it comes to citizens with taxable income of up to Rs 5 lakh, opting for the old tax regime, they can claim a tax rebate of Rs 12,500. With standard deductions of Rs 50,000.
When it comes to the new tax regime, individuals with a taxable income of Rs 6.75 lakh, a rebate of Rs 18,750 can be claimed, with standard deductions of Rs 75,000.
PIB
As of 2025, the Income Tax Department introduced a new update to the system. The IT Department now updated the Excel utilities for ITR Forms 2 and 3 to utilise the option to update tax rebates under section 87A for Financial Year (FY) 2023-24 or Assessment Year (AY) 2024-25.
The original deadline for filing the ITR was July 31, 2024.
