New Delhi, July 22 -- The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) has given relief to a taxpayer by allowing the benefit of the Section 87A rebate on tax payable on short-term capital gains (STCG) from equity shares.

The dispute was about whether a taxpayer can claim the Section 87A rebate when a part of their income comes from equity share gains, which are taxed separately under the Income Tax Act.

The taxpayer, a resident individual, had earned a total income of Rs.5.28 lakh in Assessment Year (AY) 2024-25. This included around Rs.1.42 lakh as short-term capital gains from selling equity shares.

Since her total income was below Rs.7 lakh, she claimed a rebate under Section 87A, a tax benefit available to eligible ind...