| Question And Answer | |
|---|---|
| Subject: | Old Regime to New Regime switchover / AY 2023-24 / |
| Category: | Income-Tax |
| Querist: | V. Rengarajan |
| Answered by: | Mr . H. N. Motiwalla |
| Tags: | New tax regime, Old Regime to New Regime switchover |
| Date: | February 25, 2024 |
The original return was filed under old regime within the timeline of Sec 139(1). The revised return was filed with substantial increase in income under new regime. The intimation was processed under old regime with consequential demand. Is there any way out please.
Section 115BAA applied to tax on income of certain domestic companies. While section 115BCA applies to tax on income of individuals and Hindu Undivided Family
Sub section (5) of section 115BCA reads as under:
“Nothing contained in this section shall apply unless option is exercised .in the prescribed manner by the person –
(i) having income from business or profession, on or before the due date specified under sub section (1) of section 139 for furnishing the return of income for any previous year relevant to the assessment year commencing on or after the 1st day of April,2021 and such option once exercised shall apply to subsequent assessment years,
(ii) having income other than the income referred to in clause (i) along with the return of income to be furnished under sub section (1) of section 139 for a previous year relevant to the assessment year.
Provided that the option under clause (i) once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise option under this section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available .
Sub section (5) of section 115 BAA provides similarly.
So, it is clear that the return of income in new regime has to be filed on or before “due date” of filing the return of income under section 139(1). Thus, it not clear from the question, how he can shift to the new regime..
In fact, the assessee has filed the return under old regime within the timeline of section 139(1). Now, he can file revised return under section 139(5) before three months prior to the end of the relevant assessment year or before the completion of assessment, whichever is earlier, under the old regime. At this juncture he can not shift to new regime because under new regime, he has to file return of income under sector 139 (1) alongwith form No. 10-IC or 10-IE according to the status of the assessee.
Therefore, intimation was correctly processed under the old regime ignoring the return filed in new regime.