Section 87A Rebate – Restriction applied even before it became law?

CA Abhas Halakhandi posted in X (twitter) a social media platform about the Section 87A Rebate.

He says that from FY 2025-26, Section 87A rebate won’t apply in new regime on special rate income like LTCG, STCG u/s 111A as per new proviso inserted vide Finance Act 2025.

But said rebate is restricted for FY 2023-24 and 2024-25 as such the taxpayers are paying additional tax for said period even though the restriction wasn’t in force.