Rebate under Section 87A Allowed on STCG Taxed under Section 111A

In the case of Jayshreeben Jayantibhai Palsana vs. ITO, the Ahmedabad Income Tax Appellate Tribunal (ITAT) ruled that a resident individual with a total income below ₹7,00,000 is entitled to a full tax rebate under Section 87A, even if their entire tax liability comes from short-term capital gains (STCG) taxed under Section 111A. This decision addresses a common issue where the Centralized Processing Centre (CPC) at Bengaluru was denying this rebate. The tribunal noted that Section 111A does not explicitly restrict the Section 87A rebate, a key distinction from Section 112A, which has an exp...