Even after revising their income tax returns (ITRs) in line with a Bombay High Court directive, many taxpayers, particularly those with income below Rs 7 lakh, are facing demand notices from the Income Tax Department. At the heart of this issue lies the confusion around the interpretation of Section 87A of the Income Tax Act 1961 and understanding the taxability of special rate incomes like Short-term Capital Gains (STGC) under Section 111A.