Opted new tax regime in Form 16 while filed Old tax regime

ITR 1354 views 11 replies

Arunkumar E

18 Points Joined July 2021

A employee has opted 115BAC with his employer hence the employer has deducted tax in accordance to that without reporting any deductions. But the employee has filed in old tax regime with 80C, 80D, standard deduction to salary. Now the department has raised a notice saying that the employee has claimed more deductions than what is reported in Form 16 by the employer and to correct the same to maintain consistency.

1. Is there any circular or rule saying that the ITR filed is to be in accordance with Form 16 reported by the employer.

2. Is the form 16 need to be rectified

3. Can i just respond to the notice saying whatever filed is correct?

Thanks in advance.

Replies (11)

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

IT dept has given option to the tax payers to choose the tax regime whichever is beneficial to you.

You can change the tax regime while filing ITR if it is beneficial to you.

2.Nothing wrong in claiming the deductions under old tax regime.Need not rectify form 16 , you may go as per salary statement

3. Yes. You can respond stating that it is correct

Mahesh Shah

2478 Points Joined July 2017

Can u state the contents of notice?

CA Rashmi Gandhi

Chartered Accountant

86505 Points Joined April 2011

1. No such circular
2. You can ask your employer to avoid unnecessary litigation
3. Respond for now that return filed is correct.

Eswar Reddy S

CFO- at NHTF

58280 Points Joined August 2012

2. Rectification of form 16 requires to file Tds correction statement from employer and it's not acceptable since you have already submitted a declaration to deduct tax under new tax regime..Hence employer can't give rectified form 16.

You can get statement of salary for the Full financial year