I have received a demand notice from the Income Tax Department, but I believe the calculation is incorrect.
For AY 2025-26, I originally filed my ITR-3 under the Old Tax Regime, claiming eligible deductions under Section 80C, Home Loan Interest, and House Rent Allowance (HRA). However, these deductions were not reflected in my Form 16.
Initially, I received a notice regarding a higher refund claim. In response, I revised my return under the New Tax Regime, without claiming any deductions. Later, I came to understand that ITR-3 taxpayers may not be eligible to switch from the Old Tax Regime to the New Tax Regime through a revised return in my situation.
It appears that the system has now considered my original return under the Old Tax Regime, but without allowing the deductions that were claimed. As a result, I have received a demand notice of approximately ₹1 lakh.
My concern is whether there is any way for the Income Tax Department to consider my original ITR filed under the Old Tax Regime along with the eligible deductions, or alternatively, whether the revised return under the New Tax Regime can be considered, if permissible under the applicable rules.
I would appreciate your guidance on how this issue can be resolved.
CAclubindia
