Selecting Tax Regime while for calculating tax relief on under Section89 of income tax act 1961.
This query is : Resolved
02 March 2026
Hence query:-
1 Can for financial years 2021,2022,2023 the tax calculations ( inclusive of arrears of respective years ) be done Sir
During FY 2025-26 some arrears are received and these arrears are of and related to earlier financial years. Where as in current financial year income ( i.e for Assessment Year 2026-27 ) ITR is to be filed under New Tax Regime ( which is now a default regime in individual case ). But for income of earlier financial years i.e 2020-21, 2021-22 .2022-23, the ITRs were earlier filed under Old Regimes in their relevant assessment years.
Now relief under section 89 is to be claimed with calculations and by filing of Gorm10E in assessment year 2026=27.now as per New Tax Regime when ITRs of these FYs were already filed as per Old Regime and time of filing of Revised Returns is also already elapsed.
2. Can there be mismatch allowed of selecting different Tax Regimes for calculating only relief of Section 89. pertaining to past ITRs already filed. OR Tax Regime has to be mandatorily to be same for Relief Calculations and that of ITRs of related Financial Years.
3 Can in above case , New Tax Regime can be chosen for calculating relief under section 89 for earlier financial years, if New Tax Relief turns out to be more beneficial in such case
Please guide point-wise.
Thank You.
Hence query:-
1 Can for financial years 2021,2022,2023 the tax calculations ( inclusive of arrears of respective years ) be done Sir
During FY 2025-26 some arrears are received and these arrears are of and related to earlier financial years. Where as in current financial year income ( i.e for Assessment Year 2026-27 ) ITR is to be filed under New Tax Regime ( which is now a default regime in individual case ). But for income of earlier financial years i.e 2020-21, 2021-22 .2022-23, the ITRs were earlier filed under Old Regimes in their relevant assessment years.
Now relief under section 89 is to be claimed with calculations and by filing of Gorm10E in assessment year 2026=27.now as per New Tax Regime when ITRs of these FYs were already filed as per Old Regime and time of filing of Revised Returns is also already elapsed.
2. Can there be mismatch allowed of selecting different Tax Regimes for calculating only relief of Section 89. pertaining to past ITRs already filed. OR Tax Regime has to be mandatorily to be same for Relief Calculations and that of ITRs of related Financial Years.
3 Can in above case , New Tax Regime can be chosen for calculating relief under section 89 for earlier financial years, if New Tax Relief turns out to be more beneficial in such case
Please guide point-wise.
Thank You.
03 March 2026
For your FY 2025-26 filing, you must file Form 10E before submitting your ITR. You are permitted to use different tax regimes for the past years' relief calculations compared to your current year's regime. Specifically, you can select the New Tax Regime for historical years in Form 10E if it yields a higher relief amount, regardless of how you originally filed those years' returns.
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05 March 2026
Sir. Thank you very much for your guide. Does it means that as per Table A / Form 10E the calculations of historical years can be done opting New Regime for Relief calculation even if Original ITRs were filed under Old Regime ,There is no requirement to revise historical years ITRs as time limit of revision already elapsed. Can you please see to it and guide if my understanding is correct please.
06 March 2026
Sir .Can you clarify on point sought to guide in reply to follow up query dated 5th March 2026 please
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