On July 26, 2024, Mr Venugopal from Tamil Nadu, filed his income tax return (ITR) for the Assessment Year 2024-25, declaring a total income of Rs 6,75,940. He also claimed a Section 87A tax rebate of Rs 25,000 and thus effectively paid no tax. His ITR included income from long-term capital gains of Rs 4,72,175, and the tax rebate he claimed was attributable to the tax due on such capital gains. Then, on April 15, 2025, the ITR was processed by the centralised processing centre (CPC) and rejected the Rs 25,000 tax rebate he had claimed. They issued an intimation notice but didn't clearly spell out why the rebate was denied.