| Question And Answer | |
|---|---|
| Subject: | CPC System – Is there not a deficiency in the System in applying / auto calculation of tax chargeable under the old and new tax regime!? |
| Category: | Income-Tax |
| Querist: | vswaminathan |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | CPC system, Processing of Tax Return by CPC |
| Date: | August 14, 2022 |
For AY 2021-22
Gross Total Income (Per Tax Return filed) more than Rs 15,00,000
Deduction claimed under Chap. VIA (80TTB + 80G) Rs 60000
Old RATE auto applied by CPC because of such claim.
If new rate were to applied, then the tax charged by CPC is far in excess.
Is that justified/warranted ?
For my viewpoint>
https://www.linkedin.com/pulse/sec-80-ttb-act-surrounding-myth-venkataraman-swaminathan/
In short, in my quite arguable view/firm conviction, based on -COMMON SENSE, PRINCIPLES OF – EQUITY and GOOD CONSCIENCE , also based on PURPOSIVE INTERPRETATION of the LAW, so long as the taxable income returned does not exceed the BREAK EVEN LEVEL (of chargeable income)#, despite deductions/exemptions claimed under Chapter VIA, the new tax regime should apply !?
# That is the top most income level, computed either with or without CHAPTER VIA deductions/ exemptions, on which tax chargeable either as per the slab rates under the old tax regime or the new tax regime would work out to the same figure.
The new tax regime does not automatically apply to any assessee. Once the new regime is selected the assessee cannot go back to the old regime. Further, it is very much possible that the tax liability could be less in the old regime vis-a-vis the new regime, especially when the assessee is claiming deductions under Chapter VIA of the Act.