[ishekk]

Last night(31st July 2024), I just missed filing ITR by few minutes. So after 12 AM when I tried submitting the ITR, portal did not accept OLD TAX regime.

Now when I am trying to file the return under ITR 1/ ITR 2 then option of OLD TAX Regime is not coming. This is making a difference of few lakh rupees in my tax liability.

I have spent considerable amount of time on the internet but have not found any solution. I also posted the issue to finace ministry but know it will just get buried: link

There is already a penalty of Rs 5000 on filing ITR late plus interest on amount pending which sounds logical. But penalty of few lakh rupees just because someone misses ITR deadline by few minutes is highly unfair. Neither I am able to get the logic why tax regime can't be changed if someone gets late in filing ITR due to some reason.

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

[amit_purohit20]

Hi I too am in the same boat as you are,

Yesterday I tried filling ITR1 but I could not find all the tabs for deductions which i can claim. So, I filed ITR2 where I could see the relevant deductions, but it would not verify and there was no way to verify and proceed further. I tried several times before 12 am but there was no way I could proceed further with the information entered. Finally gave up.

[MT_Hyderabad]

This must be unintentional. Wait for a few more days, old regime should be file able when this error is removed. Govt cannot take away this filing option retrospectively.

[ValarMorghulis]

This is intentional and communicated by the govt. and different websites pretty often. This was one of the carrot used by the GoI to file one's taxes before the deadline ended.

Individuals cannot opt for the new tax regime while filing belated ITR for AY 2024-25. The option to file ITR under the old tax regime will not be available from August 1, 2024, for FY 2023-24 (AY 2024-25) for those taxpayers for whom the deadline is July 31.

Link

"It is pertinent to note that the default regime shall be the new tax regime. Therefore, if an assessee wants to file return under old tax regime, claiming all the deductions, exemptions, and losses therein, the same has to filed within the due date. Post the due date, you have to mandatorily file under the new regime by giving up on most of the deductions, exemptions, and losses thereof. These changes aim to simplify the tax process and encourage more taxpayers to transition to the new regime," said Ritika Nayyar, Partner, Singhania & Co.

Link

[K a s h]

Originally Posted by ishekk

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

Try using the Offline Excel tool. It allowed me to select Old regime. I have already filed mine so I cant check this approach works. Try uploading the JSON generated out of this excel to file your return and let us know.

[ishekk]

Originally Posted by ValarMorghulis

This is intentional and communicated by the govt. and different websites pretty often. This was one of the carrot used by the GoI to file one's taxes before the deadline ended.

Yes this was intentional but I found about it after searching on the Internet about the issue. And I am sure there would be many other who won't be having this information. Most of the news headlines still only talk about penalties. In all the emails I received from tax dept, none talked about this issue.

Also if government wants to ensure deadline is met, then the proper way is to increase penalty; I repeat the word "penalty" . In fact if someone filed return few minutes earlier, he is able to file revise return and change tax regime but I can't do it.

I remember last night telling my wife, when filing ITR, that it does not makes any sense, we must be doing something wrong that's why deductions options are not coming but she jokingly said "yeh India hai, yaha kuch bhi hota hai". Even a CA whom I talked in the morning did not know about this issue. So I am still looking for a workaround from someone.

[Turbanator]

Originally Posted by ishekk

In fact if someone filed return few minutes earlier, he is able to file revise return and change tax regime but I can't do it.

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.

[GTX+]

I am sorry to say but you don't have the option of Old tax regime now, and even if you wait for few days (as someone suggested), you will still not have it, unless the finance ministry takes a lenient view and reopens the option (slim chance).

Quoting from the Eco times site:

If you file ITR after the deadline of July 31, 2024, you have to file your return in the new tax regime. You will not be able to choose the old regime while filing a belated ITR.

https://economictimes.indiatimes.com...8.cms?from=mdr

So I guess you will have to swallow the bitter pill this year and take the hit. This will probably serve as a reminder in coming years to not wait till the last minute.

[ValarMorghulis]

Hey, don't shoot the messenger.

Originally Posted by ishekk

Yes this was intentional but I found about it after searching on the Internet about the issue. And I am sure there would be many other who won't be having this information. Most of the news headlines still only talk about penalties. In all the emails I received from tax dept, none talked about this issue...

There are ample articles specifically calling this out and of all the things, ignorance of law is the last excuse.

Originally Posted by ishekk

...Also if government wants to ensure deadline is met, then the proper way...

Can't talk about what the govt can do.

Originally Posted by ishekk

...Even a CA whom I talked in the morning did not know about this issue...

Yikes! May be, find a better CA who might be able to wriggle you out of this.

[Dry Ice]

Originally Posted by GTX+

So I guess you will have to swallow the bitter pill this year and take the hit. This will probably serve as a reminder in coming years to not wait till the last minute.

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

I was of the impression, it’s a one way street from old to new regime.

[VikramAditya]

Don't worry, wait for a month to pass by and then when you file a late updated return you can have the option but just for your knowledge guys only salaried persons can change their regime every year how do they have better deductions otherwise for else once you have opted for the new you can't reverse the change.

The Union Budget has ruined the taxation. Even FD's will incur tax on interest credited to FD.

[JithinR]

Originally Posted by Dry Ice

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

I was of the impression, it’s a one way street from old to new regime.

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.

[GTX+]

Originally Posted by Dry Ice

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

I was of the impression, it’s a one way street from old to new regime.

Absolutely you can. However, govt wants to do away with the old regime and it is quite possible that next year old regime may not be an option for anyone.

[ValarMorghulis]

Originally Posted by GTX+

Absolutely you can. However, govt wants to do away with the old regime and it is quite possible that next year old regime may not be an option for anyone.

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?

Section 13A has given 100% exemption to political parties on their income from house property, income from other sources, capital gains and voluntary contributions received from any person subject to conditions.

Link

[VikramAditya]

Taxation is another reason people are moving out cause this is not the Country we all envisioned to live and grow.