The Income Tax Department now a day’s reviewing ITRs to identify if taxpayers have discrepancies or incorrect claims.
Issues may be related to
- Disallowed deductions which are exceeding permissible limits (e.g., excess u/s 80C).
- Disallowance of expenses from the audit report not considered in ITR.
- Mismatch in income/tax details from Form 26AS/16/16A.
- Claimed incorrect loss carry-forward for late returns.
Change made in July
The government updated the utility and removed the 87A rebate benefit for special rate incomes in the New Regime.
Impact
Many taxpayers are now receiving tax demands as they can’t claim the 87A rebate, and switching to the Old Regime in a revised return is not allowed.
Now, taxpayers are required to pay taxes on Special Rate incomes without the 87A rebate.
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