What happens when the Income Tax Department denies your Section 87A rebate because you earned short-term capital gains? A recent Jaipur ITAT ruling has offered relief to taxpayers, holding that for AY 2024-25, the rebate could not be denied against tax payable on short-term capital gains merely because those gains were taxed at a special rate. The case highlights a key difference between the tax law applicable for AY 2024-25 and the rules introduced later.