|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 !?|
|Answered by:||Research Team|
|Tags:||CPC system, Processing of Tax Return by CPC|
|Date:||August 19, 2022|
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To my questions ASKED, >
“Answer given by Advocate Shashi Ashok Bekal
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. #”
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#/## Me understand that the CPC System in place does not at all permit a taxpayer to automatically upload the completed applicable Form of Return, say ITR 1 , WITHOUT TICKING either one of the two slots- ‘YES’ or ‘NO’ under Part A , Item (A 20) , thereby answering the question, – ” Are you opting for new tax regime u/s 115BAC?”. Put differently, if taxpayer is entitled and wants to claim any deduction under CHAPTER VIA, he has no choice except to signify his opting for either of the two, even if the tax liability as auto computed by the SYSTEM is not of advantage to him.
In essence, to my understanding, it is to be impliedly admitted that, as urged for, the CPC System being deficient , requires to be plugged in with suitable correctives , so that the auto calculation of tax liability is in no case of disadvantage( or of less advantage to taxpayer !? – Any Contrarian view does not seem to at all carry any conviction ?!
Suggest to kindly go through once again, closely, the ATTACHMENT for more clarity !
The queriest may have to write to CBDT and get the clarification . Answer has been given to the best of ability and understanding
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Request to consider the relevance of the more recent development as covered in the Post on Linkedin @https://www.linkedin.com/posts/venkataraman-swaminathan-8a9b9575_centre-mulls-cutting-tax-rates-in-new-income-activity-6969499944097382400-PmqQ?utm_source=share&utm_medium=member_desktop