09-September-2026
Taxation
 
Taxpayer chose new tax regime, but consultant filed the wrong form, triggering old regime and Rs 1.23 lakh demand; ITAT orders ITR to be processed under new tax regime and gives relief on tax demand
09-Sep-2026

Filing your own income tax return can be a daunting and tedious process for many. That's when you hire a consultant. But, what if the consultant mixes up your ITR between the new and old income tax regime? You may get a tax notice, and that's exactly what happened with Mr Shah from Bengaluru. A resident of Ali Asker Road, Bengaluru, Mr Shah filed his income tax return (ITR) under the new tax regime and reported a total income of Rs 32.55 lakh. However, on September 30, 2025, his tax consultant inadvertently filed Form No. 10-IEA, effectively exercising the option to move him out of the new income tax regime! This created a problem for Shah because his ITR had been prepared on the basis of the new income tax regime. But, filing Form 10-IEA meant that his income tax liability would instead be determined under the old income tax regime, which resulted in a much higher tax outgo.

News Source:- https://timesofindia.indiatimes.com/business/india-business/taxpayer-chose-new-tax-regime-but-consultant-filed-the-wrong-form-triggering-old-regime-and-rs-1-23-lakh-demand-itat-orders-itr-to-be-processed-under-new-tax-regime-and-gives-relief-on-tax-demand