As the deadline for submitting revised Income Tax Returns (ITR) draws near, it’s important for taxpayers to be aware of the benefits they can claim, such as the Section 87A tax rebate. Properly filing your ITR on time can help you save money and stay compliant with tax laws. Here’s what you need to know about Section 87A, its advantages, the repercussions of missing the deadline, and a detailed guide on how to file your revised ITR.

What Is Section 87A ?

Section 87A of the Income Tax Act provides a rebate for eligible taxpayers, which can significantly lower or even completely eliminate your income tax liability if you satisfy specific criteria. Here are the main points to consider

1. Eligibility Criteria:
   • You must be a resident individual.
   • Your total taxable income (after deductions) should remain below ₹7,00,000 for the financial year 2023-24.
2. Rebate Amount:
   • The maximum rebate under Section 87A is ₹12,500.
   • If your calculated tax liability is ₹12,500 or less, you qualify for a complete rebate.
3. Objective:
   • The rebate is designed to offer support to middle-income earners while promoting prompt tax compliance.

Why File a Revised ITR Before January 15, 2025 ?

The Income Tax Department permits taxpayers to amend their ITRs if they find any mistakes or omissions in their initial submissions. The deadline for filing a revised ITR for FY 2023-24 is January 15, 2025. Failing to meet this deadline may lead to the following consequences

1. Loss of Section 87A Benefits: If you don’t file your revised ITR, you won’t be able to claim the rebate under Section 87A, which means you’ll miss out on potential tax savings.
2. Interest and Penalties: You could face penalties under Section 234F, along with interest on any unpaid taxes as outlined in Sections 234A and 234B.
3. Reduced Refunds: Errors in your original ITR that are not corrected could result in lower tax refunds or the denial of deductions and exemptions you may be eligible for.
4. Compliance Issues: Failure to comply with tax laws may result in examination or legal consequences from the Income Tax Department.

Here Is The Guide to Filing a Revised ITR

Filing a revised ITR is simple. Just follow these steps to make sure you claim all eligible benefits, including the Section 87A rebate.

1. Login to the Income Tax e-Filing Portal:
   • Visit www.incometax.gov.in and log in using your PAN or Aadhaar details.
2. Select the Correct Assessment Year:
   • Choose the assessment year 2024-25 for income earned in FY 2023-24.
3. Access the Revised ITR Form:
   • Navigate to ‘e-File’ > ‘Income Tax Returns’ > ‘File Revised Return’.
   • Select the appropriate ITR form (e.g., ITR-1, ITR-2) based on your income type.
4. Provide Corrected Information:
   • Fill in all details accurately. Ensure you calculate your income after deductions and confirm eligibility for the Section 87A rebate.
5. Verify and Submit:
   • Use e-verification methods like Aadhaar OTP, net banking, or EVC to validate your revised return.
6. Acknowledge Submission:
   • Download the acknowledgment receipt (ITR-V) for your records.

What Happens If You Don’t File Your Revised ITR ?

Not filing a revised Income Tax Return (ITR) by the deadline can lead to serious consequences

1. Financial Impact:
   • The removal of the Section 87A rebate could raise your tax liability by as much as ₹12,500.
   • You may also face late filing penalties of up to ₹10,000 under Section 234F.
2. Legal Consequences:
   • Consistent failure to comply could lead to increased scrutiny or notifications from the Income Tax Department.
3. Missed Refund Opportunities:
   • Any errors in your original tax return may go uncorrected, which could impact your tax refund.

Key Points to Remember

1. Eligibility for Section 87A: Make sure your total taxable income stays below ₹7,00,000 to be eligible for the rebate.
2. Correct Errors in Time: Make sure your total taxable income stays below ₹7,00,000 to be eligible for the rebate.
3. Keep Documents Ready: Maintain proof of income, deductions, and taxes paid for accurate filings.

Seek Professional Help: If you’re unsure about filing, consult a tax expert to avoid errors and maximize benefits.

Conclusion

The deadline of January 15, 2025, for submitting a revised Income Tax Return (ITR) is your final opportunity to claim the Section 87A rebate and fix any errors in your original submission. Filing on time not only allows you to save money but also provides peace of mind by ensuring you remain compliant with the law. Don’t wait—submit your revised ITR today and make the most of the tax benefits that are available to you!