Section 115BAC of the Income Tax Act

This query is : Resolved

kowsalya (Querist)
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14 February 2024 For FY 2020-21, the income tax return was filed under new tax regime but while filing Revised return (ITR 3) The return was processed without considering the same as it was not opted within the the orginal due date. The income tax return for the subsequent two years was filed under new tax regime without filing the form but within due date and the same was processed with demand ( Old regime). Can you please advice the resolution of this issue.

Thanks in Advance

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 It seems there are two issues here based on your description:

1. **Revised Return for FY 2020-21 Under New Tax Regime:**
- You filed a revised income tax return (ITR-3) for FY 2020-21 under the new tax regime after the original due date had passed. Typically, if you wish to switch from the old tax regime to the new tax regime, you need to make this choice within the original due date of filing the return (usually July 31 of the assessment year).
- Since you filed the revised return under the new tax regime after this due date, the Income Tax Department (ITD) processed your return as per the old regime that was initially chosen.
- **Resolution:** Unfortunately, once the due date for filing the original return has passed, you cannot switch from the old regime to the new regime for that particular assessment year. The ITD processes the return based on the regime selected within the due date.

2. **Subsequent Years Filed Under New Tax Regime with Demand (Old Regime):**
- For the subsequent two years (FY 2021-22 and FY 2022-23), you filed your income tax returns under the new tax regime within the due date, but the ITD processed these returns with demand under the old regime.
- **Resolution:** If the returns for subsequent years were processed with a demand under the old regime despite being filed under the new regime, it suggests there might have been an error or discrepancy in the tax computation. You should review the demand notice received from the ITD carefully to understand the reasons for the demand.
- If you believe there is an error, you can:
- File a rectification request under Section 154 of the Income Tax Act to correct any mistakes in the processing of your returns.
- Alternatively, if there is a genuine discrepancy in the tax payable, you may need to pay the demand or file an appeal depending on the situation.

**General Advice:**
- Ensure that you file your income tax returns accurately and within the due dates specified by the ITD.
- Double-check the tax regime (old or new) chosen while filing your returns and ensure that it aligns with your tax planning strategy.
- If there are demands or discrepancies in tax processing, seek guidance from a tax professional or CA who can assist you in resolving these issues through appropriate channels such as rectification, appeals, or other legal remedies available under the Income Tax Act.

Given the specifics of your situation, it's advisable to consult with a tax advisor who can provide tailored advice based on a thorough review of your case and the notices received from the ITD.