Bombay High Court extends ITR filing deadline for taxpayers claiming 87A rebate to January 2025

The Bombay High Court has ordered the Central Board of Direct Taxes (CBDT) to extend the deadline for filing Income Tax Returns (ITRs) for taxpayers eligible for the Section 87A rebate until January 15, 2025. This follows a Public Interest Litigation regarding recent software changes that restricted rebate claims. Previously, the rebate under Section 87A was not applicable to certain incomes, including short-term capital gains. The court found that these software modifications unfairly prevented eligible taxpayers from claiming their rebates, violating their rights under the Income Tax Act. The court's decision allows taxpayers who filed ITRs without claiming the rebate to submit revised returns by the new deadline. However, those who did not respond to defective notices may still face challenges in claiming the rebate.