ITR 1 filed under old regime but defective notice received

my client is having salaried income and 194 IB ( rental income from plant and machinery) income,

ITR 1 have been filed and shown rental inccome as IFOS, original return filed before due date but now due to defective notice, we need to show rental income under PGBP (technically Form 10 IEA has not been filed as we filed ITR 1) now we need to file ITR 3 or ITR 4 but only under NEW REGIME

 we have refund of 90k (if we change regime  in the same FY  i heard refund will not be processed),please suggest 

we have given response to the defective notice but no reply from dept yet (its been 1 month)

Replies (4)
Quick Summary
A taxpayer filed ITR 1 under the old tax regime, reporting rental income as 'Income From Other Sources'. They've now received a defective notice and need to report this income under PGBP. The advice suggests filing ITR 3 or ITR 4 under the new tax regime, as ITR 1 is no longer an option. It's crucial to select the 'New Regime' and report the rental income correctly in the relevant schedules. The user also notes a potential issue with refund processing if the regime is changed mid-financial year and mentions a deadline of 31st December 2024 for filing a revised return.

You've already filed ITR-1 showing rental income under IFOS (Income From Other Sources) and now need to revise it to show the rental income under PGBP (Profits and Gains from Business or Profession) in either ITR-3 or ITR-4 under the new tax regime. Since you've received a defective notice, you'll need to file a revised return. Here's what you can do: 1. File ITR-3 (if you're eligible) or ITR-4, as you can't file ITR-1 again. 2. Select the "New Regime" option in the revised return. 3. Report the rental income under PGBP (Schedule BP or Schedule PGBP) in the revised return. 4. Ensure you've filed Form 10IE (if required) to opt for the new tax regime. 5. Pay any additional tax due or claim a refund if you've overpaid. Please note that you might need to provide explanations and supporting documents for the changes made in the revised return. Consult a tax professional or accountant to ensure accurate filing and compliance. Remember to file the revised return within the allowed timeframe to avoid any further issues or penalties!

This is not a knowledge forum , so kindly post factual datas.
Originally posted by : sabyasachi mukherjee
opening quote This is not a knowledge forum , so kindly post factual datas. closing quote

WHAT RESPONCE YOU GIVEN UNDER DEFECTIVE NOTICE ? IF YOU FILLED ITR1 IN YOUR RESPONCE, IT WILL BE DEFECTIVE AGAIN.

UNDER DEFECTIVE NOTICE, YOU HAVE OPTION TO SELECT FORM 3 OR 4, SINCE OPTING OUT NEW REGIME IS UNDER 139(1) BEFORE 31ST JULY 24 , YOU WILL FALL IN NEW REGIME. 

YOU HAVE TIME TILL 31ST DEC 2024 TO FILE REVISED RETURN.

https://www.incometax.gov.in/iec/foportal/help/statutory-forms/file-statutory-form/popular-form/form-10-IEA-um

7.What is the time limit for filing Form 10-IEA?

Form 10-IEA should be filed on or before the due date of filing of return as specified u/s 139(1) of the Income Tax Act, 1961.

15.I wanted to opt out of new tax regime in Form 10-IEA, but I filed Form 10-IEA after due date of Income tax return. Will I get the benefit of old tax regime?

In case you want to opt out of new tax regime and you fail to file the form within due date. You will not be eligible to get the benefit of old tax regime in your ITR.

 

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