15BAC OPTION AT THE TIME OF FILLING OF AUDITED IT RETURN

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This discussion addresses a client who initially opted for the 15BAC (new tax regime) for AY 2021-22 but later filed a belated return for AY 2022-23 without formally withdrawing the option via Form 10-IE. The query explores whether the tax assessment will proceed under the old regime despite the initial 15BAC election, especially since tax was paid accordingly. It clarifies that the 15BAC option generally continues unless formally withdrawn, and withdrawal is typically not possible with a belated return.

Dibyendu Majumder

Dibyendu Majumder (Querist)

26 December 2022 Sir/Madam,
My client opted for rule 15BAC at the time of filing a return for A.Y.2021-22 , But in A.Y.2022-23 he filed a belated return after the audit. But was not able to file form 10 -IE for his withdrawal of the 15 BAC option, So, at the time of filling the mentioned 15BAC he mentioned 'continuing to opt', But he deposited the tax in the old regime, so, ITR -V showing a refund. I think 10-IE filling is not possible in case of a belated return. Is his tax calculated in the old regime at the time of assessment without filling out a 10-IE ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 December 2022 As he had opted new regime in AY 2021-22, and the same has not been withdrawn, the subsequent assessment would be under new regime, until it is withdrawn by filing form 10IE again.

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Dibyendu Majumder

Dibyendu Majumder (Querist)

26 December 2022 Is the same also applicable to the assessee's conduct of business or profession?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 December 2022 Yes, it remains constant/same till assessee (having income from PGBP head) wishes to opt out.
& once opted out, the assessee cannot opt it again.

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