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ITR PROCESSED IN OLD TAX REGIME EVEN OPTED 115BAC ALONG WITH FILING OF 10IE

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Arshad Ameen

9 Points Posted on 28 February 2024

Dear CA Club Members,

Here's my situation:

For the Assessment Year (AY) 2021-22, I filed my ITR on March 15, 2022, and along with it, I opted for the new tax regime by filing Form 10IE on the same date. However, despite opting for the new regime, the system processed my ITR in the old tax regime.

Furthermore, a similar occurrence happened for the AY 2022-23. Despite opting for the new tax regime, the system processed my returns under the old regime once again.

I attempted to rectify this issue by requesting a reprocessing, but unfortunately, the same outcome persisted.

I am reaching out to the esteemed members of this forum to seek advice on how to rectify this issue. Has anyone else encountered a similar problem? What steps can be taken to ensure that the ITR is processed according to the opted tax regime? Are there any additional forms or procedures that need to be followed to ensure proper processing under the new tax regime?

Replies (9)

Quick Summary

A user is experiencing an issue where their Income Tax Returns (ITR) are being processed under the old tax regime, even though they opted for the new tax regime (115BAC) and filed Form 10IE. This has occurred for two consecutive assessment years, and attempts to rectify the situation through reprocessing have been unsuccessful. Other members have suggested applying for manual rectification with the Income Tax Officer (ITO) as portal-based rectifications have also not yielded results for some.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 28 February 2024

If you want to opt for new regime, you have to opt for it before due date by filing FORM 10IE.

As you have filed the Form 10IE after due date , no benefit of new scheme will be available.

Arshad Ameen

9 Points Posted on 28 February 2024

Thanks for your replay.

But, For AY2021-22 the due date has been extended to 15th Mar 2022. I have filed form 10IE and ITR on 15th Mar 2022.

Arshad Ameen

9 Points Posted on 28 February 2024

Please find attached the circular stating that the due date has been extended.

I am ready to pay the additional demand for the AY2021-22. For AY2022-23 the same happened.

CA Rashmi Gandhi

Chartered Accountant

86505 Points Posted on 29 February 2024

Apply for rectification.

For AY 22-23 , also apply for rectification. It was technical issue on portal when the earlier year new option not allowed then in next year it is also calculating tax with old regime.

We also applied for rectification in 4 cases but no rectification order received till date even after 4-5 months.