Mumbai: A Lifeline for Struggling Taxpayers

In a significant move, the Bombay High Court has granted additional time to taxpayers, including salaried individuals, to file revised returns and claim tax refunds for the assessment year 2024-25. This decision comes as a relief to those who were unable to claim an income-tax rebate due to software changes in the filing platform introduced by the Income-Tax (I-T) department.

A Public Interest Litigation (PIL) filed by The Chamber of Tax Consultants challenged the disabling of Section 87A rebate claims through the filing utility. The PIL argued that changes made after July 5, 2024, arbitrarily prevented taxpayers from claiming the rebate under Section 87A, which is designed to provide tax relief to individuals with incomes below specified thresholds.

The High Court bench, led by Chief Justice Devendra Kumar Upadhyaya and Justice Amit Borkar, emphasized that procedural changes cannot override statutory rights. The court noted that the rebate under Section 87A is intrinsically linked to a taxpayer's total income and should be accessible to all eligible taxpayers. The last date for filing, originally set for Dec 31, 2024, has been extended to Jan 15, 2025, based on the interim order.