ITR Submitted Under New Regime; Consultant Error Results in Old Regime Application and Rs 1.23 Lakh Demand

Mr. Shah, a resident of Ali Asker Road in Bengaluru, submitted his Income Tax Return (ITR) under the new tax regime, declaring a total income of Rs 32.55 lakh. However, on September 30, 2025, an error occurred when his tax consultant mistakenly filed Form No. 10-IEA, which is related to the option for taxation under section 115BAC of the Income Tax Act.

Its important to note that the new tax regime, introduced in the Finance Act 2020, offers lower tax rates but removes many exemptions and deductions available in the old tax regime. Form 10-IEA is crucial for taxpayers who opt for this new regime, as it helps in the declaration of income and ensures compliance with the tax authorities.

Taxpayers are advised to verify the accuracy of their filed returns and forms to avoid potential issues with assessment and ensure that they benefit from the intended tax structure. Errors in filing can lead to unnecessary complications, including additional tax liabilities or penalties.