E-proceedings
This query is : Resolved
Mukund Seshadri
(Querist)
04 February 2026
I got the following e-proceeding yesterday on my ITR 3
Certain allowances claimed under Section 10 do not align with the salary bifurcation reported
in the ITR. Accordingly, these allowances are been disallowed and added back to the gross
salary. Further, since the return of income was not filed within the prescribed due
date, the option to opt out of the new tax regime under Section 115BAC(6) could not be exercised. As a
result, only those deductions and allowances specifically permitted under Section 115BAC have been
considered.
I realized that ITR 3 has another schedule called exempt income which i was supposed to fill for claiming this leave encashment amount . However I missed it at the time of IT filing.
Should i go ahead and disgree to this order and explain to them my ask for exemption for leave encashment is correct and admit i missed filling (or) should i agree and then go for rectification ?
Kindly help me with your suggestions.
Certain allowances claimed under Section 10 do not align with the salary bifurcation reported
in the ITR. Accordingly, these allowances are been disallowed and added back to the gross
salary. Further, since the return of income was not filed within the prescribed due
date, the option to opt out of the new tax regime under Section 115BAC(6) could not be exercised. As a
result, only those deductions and allowances specifically permitted under Section 115BAC have been
considered.
I realized that ITR 3 has another schedule called exempt income which i was supposed to fill for claiming this leave encashment amount . However I missed it at the time of IT filing.
Should i go ahead and disgree to this order and explain to them my ask for exemption for leave encashment is correct and admit i missed filling (or) should i agree and then go for rectification ?
Kindly help me with your suggestions.
05 February 2026
AGREE to the e-proceeding now, then immediately file a RECTIFICATION u/s 154 by correctly reporting leave encashment under “Exempt Income”. Do not contest the new tax regime point.
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