{"id":28795,"date":"2025-02-26T16:36:22","date_gmt":"2025-02-26T11:06:22","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=28795"},"modified":"2025-03-27T16:21:51","modified_gmt":"2025-03-27T10:51:51","slug":"assessees-now-received-intimation-demand-orders-on-feb-2025","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/assessees-now-received-intimation-demand-orders-on-feb-2025\/","title":{"rendered":"Assessees now received Intimation demand Orders on Feb 2025"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dadf4530484\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dadf4530484\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/assessees-now-received-intimation-demand-orders-on-feb-2025\/#Assessees_have_now_received_Intimation_Orders_on_Feb_2025_for_demands-_Due_to_Post-Filing_Disallowance_Section_87A_rebate\" title=\"Assessees have now received Intimation Orders on Feb 2025 for demands- Due to Post-Filing Disallowance Section 87A rebate\u00a0\">Assessees have now received Intimation Orders on Feb 2025 for demands- Due to Post-Filing Disallowance Section 87A rebate\u00a0<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/assessees-now-received-intimation-demand-orders-on-feb-2025\/#Key_Issues_Taxpayers_who_claimed_Sec_87A_rebate_in_Income_Tax_Returns_for_AY_2024-25_But_later_rebate_disallowed_by_AO_%E2%80%93_What_options_are_there_for_Taxpayer_Now\" title=\"Key Issues: Taxpayers who claimed Sec 87A rebate in Income Tax Returns for AY 2024-25, But later rebate disallowed by AO \u2013 What options are there for Taxpayer Now?\">Key Issues: Taxpayers who claimed Sec 87A rebate in Income Tax Returns for AY 2024-25, But later rebate disallowed by AO \u2013 What options are there for Taxpayer Now?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/assessees-now-received-intimation-demand-orders-on-feb-2025\/#Possible_Actions_for_Affected_Taxpayers_Due_to_Post-Filing_Disallowance_Section_87A_rebate\" title=\"Possible Actions for Affected Taxpayers:\u00a0Due to Post-Filing Disallowance Section 87A rebate\u00a0\">Possible Actions for Affected Taxpayers:\u00a0Due to Post-Filing Disallowance Section 87A rebate\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/assessees-now-received-intimation-demand-orders-on-feb-2025\/#Conclusion_What_Should_Taxpayers_Do\" title=\"Conclusion: What Should Taxpayers Do?\">Conclusion: What Should Taxpayers Do?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-25865\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25.jpg\" alt=\"Income Tax Return Form ITR 1 &amp; ITR 4 notified for AY 2024-25\" width=\"1200\" height=\"675\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25.jpg 1200w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25-300x169.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25-1024x576.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25-768x432.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2023\/12\/Income-Tax-Return-Form-ITR-1-ITR-4-notified-for-AY-2024-25-800x450.jpg 800w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Assessees_have_now_received_Intimation_Orders_on_Feb_2025_for_demands-_Due_to_Post-Filing_Disallowance_Section_87A_rebate\"><\/span><span style=\"color: #000080;\"><strong>Assessees have now received Intimation Orders on Feb 2025 for demands- Due to Post-Filing Disallowance Section 87A rebate\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Taxpayers who claimed Sec 87A rebate in Income Tax return\u2019s for AY 2024-25, But later rebate disallowed by AO \u2013 What is Solution for Such demand case?<\/p>\n<p>This situation has created a lot of confusion among taxpayers who initially claimed the Section 87A rebate while filing Income Tax return&#8217;s for AY 2024-25, only to see the rebate disallowed later during processing. Here\u2019s a breakdown of the issue and possible next steps:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Issues_Taxpayers_who_claimed_Sec_87A_rebate_in_Income_Tax_Returns_for_AY_2024-25_But_later_rebate_disallowed_by_AO_%E2%80%93_What_options_are_there_for_Taxpayer_Now\"><\/span><span style=\"color: #000080;\">Key Issues: Taxpayers who claimed Sec 87A rebate in Income Tax Returns for AY 2024-25, But later rebate disallowed by AO \u2013 What options are there for Taxpayer Now?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><span style=\"color: #000080;\"><strong>Initial Allowance of Rebate:<\/strong><\/span> When Income Tax returns were filed using the Income Tax Department\u2019s utility, the rebate u\/s 87A was allowed for taxpayers under the new tax regime, even on special rate incomes (e.g., short-term capital gains u\/s 111A or long-term capital gains u\/s 112A).<\/li>\n<li><span style=\"color: #000080;\"><strong>Post-Filing Disallowance:<\/strong> <\/span>Many assessees have now received Intimation Orders u\/s 143(1) or Rectification Orders u\/s 154 (in cases where the original intimation was issued earlier), disallowing the 87A rebate against such special rate incomes.<\/li>\n<li><span style=\"color: #000080;\"><strong>Income Tax return Utility Changes in July 2024:<\/strong> <\/span>The Income Tax Department updated its Income Tax Returns filing utility mid-year, removing the 87A rebate against special rate incomes. However, taxpayers who filed before this change are now being asked to pay additional tax.<\/li>\n<li><span style=\"color: #000080;\"><strong>No Option to Shift to Old Regime:<\/strong> <\/span>Since taxpayers opted for the new tax regime at the time of filing, they cannot switch to the old tax regime through a revised return (ITR-U or ITR-5), leaving them with no option other than to pay the additional demand.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"Possible_Actions_for_Affected_Taxpayers_Due_to_Post-Filing_Disallowance_Section_87A_rebate\"><\/span><span style=\"color: #000080;\"><strong>Possible Actions for Affected Taxpayers:\u00a0<\/strong><strong>Due to Post-Filing Disallowance Section 87A rebate\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><span style=\"color: #000080;\"><strong>Filing an Appeal:<\/strong> <\/span>Taxpayers can appeal before the Commissioner of Income Tax (Appeals) u\/s 246A against the 143(1) intimation order or rectification order under Section 154, citing: The Bombay High Court ruling in <em>The Chamber of Tax Consultants v. Director General of Income Tax (Systems)<\/em>\u00a0dated 24.01.2025, which ruled in favor of taxpayers regarding the improper application of the updated utility. The principle of legitimate expectation, as the utility initially allowed the rebate.<\/li>\n<li><span style=\"color: #000080;\"><strong>Await Further Clarifications:<\/strong> <\/span>The Income Tax Department should officially clarify its stand on this issue. If they acknowledge their own system&#8217;s inconsistencies, a relief mechanism (such as a special circular) may be introduced.<\/li>\n<li><span style=\"color: #000080;\"><strong>Pay the Demand and Seek Refund Later:<\/strong><\/span> If a taxpayer doesn\u2019t wish to go through an appeal process, they may pay the demand and then explore filing a rectification request or appeal for a refund once clarity emerges.<\/li>\n<\/ol>\n<p>This issue is critical because it affects a large number of taxpayers who filed returns in good faith based on the department\u2019s own utility. A clarification from the Central Board of Direct Taxes or the Income Tax Department is essential to address this anomaly fairly.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion_What_Should_Taxpayers_Do\"><\/span><span style=\"color: #000080;\"><strong>Conclusion: What Should Taxpayers Do?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Wait for Further Updates: Since experts anticipate another utility update, it may be best to hold off on filing a revised ITR until official confirmation.<\/li>\n<li>File a Rectification Request: Some taxpayers have seen tax demands disappear after submitting a rectification request (u\/s 154) via the CPC e-filing portal.<\/li>\n<li>Consider an Appeal if Demand Persists: If the rebate remains disallowed, taxpayers may appeal to CIT(A) under Section 246A, citing past rulings in favor of taxpayers.<\/li>\n<\/ul>\n<p>Although the ITR filing utility was updated on January 4, 2025, it still does not allow the 87A rebate on special rate incomes. The Income Tax Department may release another update to fix this, but until then, taxpayers are left with rectification requests or appeals as their only recourse.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Assessees have now received Intimation Orders on Feb 2025 for demands- Due to Post-Filing Disallowance Section 87A rebate\u00a0 Taxpayers who claimed Sec 87A rebate in Income Tax return\u2019s for AY 2024-25, But later rebate disallowed by AO \u2013 What is Solution for Such demand case? This situation has created a lot of confusion among taxpayers &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[10240],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28795"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=28795"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28795\/revisions"}],"predecessor-version":[{"id":28797,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28795\/revisions\/28797"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=28795"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=28795"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=28795"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}