INCOME TAX7 Sept 2026
Consultant mistakenly opted taxpayer for old tax regime, triggering ₹1.23 lakh demand: ITAT gives relief
A Bengaluru taxpayer faced a ₹1.23 lakh tax demand after his consultant mistakenly filed Form 10-IEA, opting for the old regime. His later income-tax return clearly chose the new regime. ITAT Bangalore ruled the return's choice stands and directed recomputation, deleting the demand. The lesson: always verify which tax regime your final return actually selects.
Key Statutory Highlights
- A Bengaluru taxpayer's consultant mistakenly filed Form 10-IEA, which opted him out of the new tax regime.
- The taxpayer later filed his income-tax return under the new regime, but the tax office processed the old regime, creating a ₹1.23 lakh demand.
- ITAT Bangalore ruled that the regime chosen in the return should be respected and ordered the tax authorities to recompute his liability.
Actionable Advice for Taxpayers / Founders:Check the tax regime shown in your final filed income-tax return, especially when a consultant handles compliance—ask them to confirm that forms like 10-IEA match your actual choice.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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