New Tax regime (AY 21-22)

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A user filed their AY 21-22 Income Tax Return (ITR) using the new tax regime and Form 10IE, but received an intimation order calculating tax under the old regime without considering 80C deductions. It appears Form 10IE was filed late, and the deductions weren't claimed in the original return. While rectification under Section 154 was attempted, it was reportedly rejected. The advice suggests meeting the jurisdictional Income Tax Officer (ITO) to explain the issue.

Satish Mehra

Satish Mehra (Querist)
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26 August 2022 I filed my ITR (belated or after due date) for AY 21-22 in march. Filed my return as per new tax regime and also filed form 10 IE. Today I got intimation order in which tax was calculated in old tax regime. And also no deduction U/s 80C were considered. There was no clarification from department about belated return for new tax regime. Please guide. Thank you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2022 The rule is the form 10IE needed to be filed before 31st July, 2021.
As you filed it late, you are not given the option.

Satish Mehra

Satish Mehra (Querist)
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26 August 2022 and sir waht about my deductions of 80C and 80D

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2022 In ITR, you had filed under new regime, so these would not have been claimed; hence not entertained.

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Satish Mehra

Satish Mehra (Querist)
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26 August 2022 isnt it unjust, if they are calculating by old regime, they must consider the deduction.
What should I do Sir

Satish Mehra

Satish Mehra (Querist)
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26 August 2022 isnt it unjust, if they are calculating by old regime, they must consider the deduction. What should I do Sir

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 August 2022 Its not injustice, when you had not claimed it in ITR, how could the system know about your investment in relation to sec. 80C or expenditure as per sec. 80D? While the rule to opt for new regime was very clear that the form 10IE needed to be filed before filing return u/s. 139(1) of the act.
Now file rectification request u/s. 154 of the act, and claim the deductions. Though I doubt whether the same would be allowed, but no harm in claiming.

Satish Mehra

Satish Mehra (Querist)
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27 August 2022 if I'll reduce the income by claiming deductions, they wont accept rectification. As we cannot add/reduce the income in rectification.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 August 2022 No. You are not reducing the income, but rectifying the error of not claiming deduction in original return, so it should be considered.

Satish Mehra

Satish Mehra (Querist)
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28 August 2022 I tried sir, but they are not accepting the rectification with deductions.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 August 2022 Its bad luck, meet your jurisdiction ITO, and convey the problem.

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