[mtripathi13]

Originally Posted by Dry Ice

Can you really go back to the old regime next year after filing under new regime this year?

.

Originally Posted by ValarMorghulis

I saw an interesting video regarding this which said that as long as Section 13A is not incorporated in the new regime, old regime is here to stay.

What is Section 13A you say?

Dear All,

There seems to be a lot of confusion about new and old schemes. Let me try and decode and simplify the issue.

1. The Finance Act,2023 made changes to the new scheme by making it the default regime. The changes were applicable wef financial year 2023-24.

2.The taxpayers were given the chance to continue in the old regime. But to remain in the old scheme, the taxpayer had to take certain steps and exercise an option as detailed in Rule 21AGA.

3. The tax payers having business/Professional income had to file a form which is Form 10IEA.

4. Other tax payers simply had to tick a radio button in their ITR.

5. The catch is that this exercise of the option had to done within the time limit specified under section 139(1), which means July/October (for audit cases).


6. So, either you file 10IEA or exercise radio button option, it has to be within due date of filing original return.

7. This is the position of law.

8. So if you are not audited and have missed filing your return, you cannot opt old regime. PERIOD. Everything else what you listen to is irrelevant.


@ValarMorghulis Sir, Sections 11 to 13A are only for Charitable Trusts, NGO and Political parties. It has got no connection to this regime play.

One more thing, in case of business income if you opt out to remain in old regime, you can opt in only once. Every year opt in opt out is not possible. For others, opt in and opt out every year is possible, the only condition is that the option has to be within due date and not beyond.

Regards
Manish

[Sk8r]

I am facing a different problem.

While my wife was paying the additional Tax due well before deadline, the payment went through from my Bank side but hasn't been credited to the Income Tax department account and not reflecting in her returns data.

Now the Bank (SBI) through which I did the payment (UPI) has washed away their hands stating that since it's an Government entity, there is nothing much they can do.

Any leads on how do I seek refund will be much appreciated. Thanks in advance

[BhayanaV]

Originally Posted by Sk8r

I am facing a different problem.

While my wife was paying the additional Tax due well before deadline, the payment went through from my Bank side but hasn't been credited to the Income Tax department account and not reflecting in her returns data.

Now the Bank (SBI) through which I did the payment (UPI) has washed away their hands stating that since it's an Government entity, there is nothing much they can do.

Any leads on how do I seek refund will be much appreciated. Thanks in advance

Why would you seek refund, rather wait and see if the credit reflects in sometime once the huge returns filed on last day are settled.

[Vinod_nair]

All Indians not filing ITR much before the last date, don't deserve any sympathy. In today's day and age, when you are carpet bombed with reminder since the last quarter, you deserve to be penalized.

The same is the case with any Insurance, you do pay the penalty for being late?

Mods: I'm sorry if I'm being too straight forward in my explanation, please delete my post, if not appropriate.

Regards.

[hothatchaway]

Originally Posted by Vinod_nair

All Indians not filing ITR much before the last date, don't deserve any sympathy. In today's day and age, when you are carpet bombed with reminder since the last quarter, you deserve to be penalized.

The same is the case with any Insurance, you do pay the penalty for being late?

Mods: I'm sorry if I'm being too straight forward in my explanation, please delete my post, if not appropriate.

Regards.

There could be many reasons for somebody missing the deadline, as it is most of us file our returns not before June; perhaps the person in question was preoccupied with something else more important. After all, tax collection may be a priority for the government but for all of us, the business of life takes precedence. In any case, most of us have already paid what we are supposed to pay by way of taxes well before the administrative task of filing returns.

My point is something else, there is already a penalty of Rs 5000 for those filing after July 31st. So you miss the deadline you pay the fine. Fine till here. But what is this business of not allowing a late filer to choose the regime of their choice??? You should do one of two things, not both.

Moreover, I don't think the rule of not allowing the choice of regimes was publicized enough. I filed well in time but was not aware of this.

I think the government feels that the common man will remain a doodh peeta bacchha even after attaining ripe old age.

[JithinR]

Originally Posted by Vinod_nair

All Indians not filing ITR much before the last date, don't deserve any sympathy. In today's day and age, when you are carpet bombed with reminder since the last quarter, you deserve to be penalized.

The same is the case with any Insurance, you do pay the penalty for being late?

Mods: I'm sorry if I'm being too straight forward in my explanation, please delete my post, if not appropriate.

Regards.

Would this be your position if for example our own Bhpian who was recently arrested and just released on Bail for simply driving his SUV in flooded Delhi waters misses the due date?

You are also assuming that folks that have taxable income above the rebate levels will have cash on hand. What if they have an emergency (need not always be medical and under the purview of a insurance policy) and weren't able to arrange for funds on time.

Don't want to take an example that involves a member here but thought perhaps you could reflect on the absurdity of your statement.

P.S As for the rule mentioned here, while I was aware that new regime is the default going forward, even I wasn't aware that you couldn't select the old one after due date. Perhaps one of those reminders could have called that out.

[NoLurkerForLong]

Originally Posted by JithinR

Believe that section 115BAC allows salaried individuals to alternate between the tax regimes every single year.

I have seen articles that mention that for self-employed individuals once you opt out of the new tax regime you can't take it up in the future years.

A hypothetical question. What if someone draws salary while also having some business income?

[Lalvaz]

Originally Posted by mtripathi13

Dear All,

There seems to be a lot of confusion about new and old schemes. Let me try and decode and simplify the issue.

....

One more thing, in case of business income if you opt out to remain in old regime, you can opt in only once. Every year opt in opt out is not possible. For others, opt in and opt out every year is possible, the only condition is that the option has to be within due date and not beyond.

Regards
Manish

Thank you Manish for explaining this vexed topic. Clearly the onus was on filing by 31st July 2024, if one wanted to continue in the old regime.

While I did file my returns well within this timeline, and hence seek no relief, I was totally oblivious of this deadline/rule. Thank God I filed in time, although the rumours that the old regime is going to be abolished from next year is not comforting.

Also this thread only serves to show that there was scope for improvement by the Income tax department in making things simpler. Many times, the FM has said that she wants to make filing taxes simple, I honestly think we have a long way to go before we can call it simple. The frequent tax rate changes, the old and new regime, the differential treatment, and only one opt in/opt out, deadlines, etc. are all making one's head spin. She must realize that most Indians are not Finance professionals and hence do not have the ability or aptitude to track her governments frequent changes. Wish she makes the required course correction to simplify things and reduce the tax burden on the middle class, while increasing the tax net to cover agricultural income and politicians.

Anyways, thank you once again for highlighting this for the benefit of all us non finance folks.

[M.Dua]

If you are a businessman you can opt for voluntary tax audit and take old tax regine, but

if you are only salaried think if there was any Business income (can be 50000 also) and go for tax audit for the same.

Please verify with a practicing CA. :-)

[mtripathi13]

Originally Posted by JithinR

P.S As for the rule mentioned here, while I was aware that new regime is the default going forward, even I wasn't aware that you couldn't select the old one after due date. Perhaps one of those reminders could have called that out.

Dear Members,

While I agree that there may be totally acceptable reasons for missing out for filing, I would respectfully disagree with the lack of knowledge about the provisions of law. Kindly note that this opt in was first done when the default regime was the old one. In those years, you needed to opt in for a new regime. There too the option had to be exercised within the due date. So, it was not a new change.

In the legal sphere, ignorance of law of foreign country is taken as a "mistake of fact" but ignorance of law of your own country is... to put it mildly ' not an excuse'. No legal remedy is available.

I am not commenting on moral/ethical/reasonableness of the provisions, as that will open pandora's box. What is moral or reasonable to one may not be to another. That is why the law exists.

You might not know a law and its repercussions, but professionals are there to help you out.

In my professional practice, time and again I have seen people be 'penny wise and pound foolish'.

I don't want to be preachy but mistakes do cost, sometimes money sometimes the time itself.

Warm Regards
Manish

Originally Posted by M.Dua

If you are a businessman you can opt for voluntary tax audit and take old tax regine, but

if you are only salaried think if there was any Business income (can be 50000 also) and go for tax audit for the same.

Please verify with a practicing CA. :-)

Sir, not suggested. There is no concept of voluntary tax audit. While filing the Tax audit form, the clause needs selection. You will not fall under any. Selecting any other clause is 'misrepresentation'. Legal ramifications apply.

[wandering_soul]

Originally Posted by Sk8r

I am facing a different problem.

While my wife was paying the additional Tax due well before deadline, the payment went through from my Bank side but hasn't been credited to the Income Tax department account and not reflecting in her returns data.

Now the Bank (SBI) through which I did the payment (UPI) has washed away their hands stating that since it's an Government entity, there is nothing much they can do.

Any leads on how do I seek refund will be much appreciated. Thanks in advance

File a grievance, they will share the steps to file rectification. In rectification you need to upload the bank transfer details and screenshots or challan from the bank side. It will be corrected.

[Burgman_tales]

Originally Posted by Turbanator

I don't have much to say on your issue, but I am curious to know how there can be so much difference between the old and new regimes.

It's possible, I see about 1lakh difference between old and new regime for myself.

[udzgodfather]

Originally Posted by VikramAditya

I think I am waiting until October until NDA goes down so at last we can get some people back who know how to run finances for our country!

While entirely refraining or indulging in the political aspect of it, pre-dissolution of a ruling government is never appreciated or taken as a good sign in the global market, India already paid a heavy price of unstable government in the late 90s.

Originally Posted by ishekk

Can someone help me out on how to get out of this mess .

Get your ITR audited, your due date will become end of October.

Originally Posted by Sk8r

I am facing a different problem.

Any leads on how do I seek refund will be much appreciated. Thanks in advance

Check your wife's latest 26AS, tax amount should reflect there, or you can check it on website portal "E-Pay Tax" tab.

[amit_purohit20]

My CA tried to file ITR after the deadline with penalty and system allowed to use old tax regime.

[avira_tk]

The government is busy getting people to stop investing in F&O because it's risky(without these pencil pushers, how would you know that speculation is risky?). They introduce a tax system where no investment gives you a break from tax rates that haven't been adjusted for inflation in ages. The bureaucrats who should have no opinion on policy are busy giving talks saying that the old system should be dismantled, maybe the pension system can be reformed to not allow any government employee to draw pension exceeding last drawn salary.

Originally Posted by Vinod_nair

All Indians not filing ITR much before the last date, don't deserve any sympathy. In today's day and age, when you are carpet bombed with reminder since the last quarter, you deserve to be penalized.

The same is the case with any Insurance, you do pay the penalty for being late?

Mods: I'm sorry if I'm being too straight forward in my explanation, please delete my post, if not appropriate.

Regards.

Right, Indians, like me who don't file ITR 1 have a grand total of 45 days to get their filling in order. The TDS documents are due legally only by 15 June for financial institutions and employers. The CAs are busy and in that window, you've got to arrange funds if taxes are due. Filing by yourself is a good way to complicate things, did it once and heck, paid a bomb for that mistake.

The IT department reminders are just spam, it's not like we don't know the last date, my return was filled in time and the acknowledgement arrived a day later. That's how stressed the system is, few years ago the mail and sms arrived 3 days later with the date of filing within deadline.

I don't have to face legal action of my insurance isn't paid, auto insurance takes about 10 minutes to buy, other policies will lapse if you don't have funds, but you don't face possible jail time for not renewing insurance policies, auto excluded. The penalty is paid to ensure a return, not avoid jail.