Jaipur Income Tax Appellate Tribunal (ITAT) has recently held that taxpayers opting for the new tax regime cannot be denied the Section 87A rebate merely Decause part of their income is taxed as short-term capital gains under Section 111A. "The Tribunal has held that the rebate under Section 87A is available against the total income tax liability and cannot be denied merely because a part of the income is taxed at a special rate. While this provides strong judicial support for taxpayers to claim the rebate while filing their Income-tax Returns, the issue has not yet attained finality. Since there is no binding decision of the jurisdictional High Court or the Supreme Court on this specific controversy, the Revenue may continue to contest the issue in appropriate cases," said Mohit Gupta, PNAM & Co LLP