Quick Summary
ITR Filed Under the New Tax Regime but Processed Under the Old Regime (ITR-3): Why It Happens and What to Do Next From FY 2023-24 onwards, the New Tax Regime (Section 115BAC) has become the default regime for individuals and HUFs. Prior to this amendment, the business taxpayers filing ITR-3 stil
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FAQ :
This typically happens if you didn't file Form 10-IE/10-IEA on or before the due date specified under Section 139(1), or if your ITR was filed belatedly. In such cases, the option for the new regime becomes invalid, and the CPC will process your return under the old regime.
Form 10-IE/10-IEA is a mandatory form that taxpayers with business income must file to formally opt for the New Tax Regime (Section 115BAC). It needs to be filed on or before the due date for filing your income tax return.
You should file a Rectification Request under Section 154 with the CPC, clearly stating that the incorrect tax regime was applied. Attach proof of timely filing of both your ITR and Form 10-IEA, along with the intimation order.
If your original return was filed within the time limit and you file a revised return within the permitted time, you may be able to correct the tax regime. However, if the original return was belated or Form 10-IEA was filed late, a revised return cannot change the tax regime.
If you filed your ITR after the due date (belated return) or filed Form 10-IEA after the due date, the law mandates that your return will be processed under the old tax regime for that year. Rectification or grievance submissions are unlikely to resolve this issue.
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