Negative impactEconomy
ITR filed under new regime, consultant’s mistake led to old regime & Rs 1.23 lakh demand
Times of India 1 hr ago·9 Sept 2026, 6:08 am
A Bengaluru taxpayer, Mr Shah, recently faced a significant tax demand of Rs 1.23 lakh due to a filing error. He had filed his return under the new tax regime, but his consultant inadvertently submitted Form No. 10-IEA. This form is used to opt out of the new regime, which meant his return was processed under the old regime. Consequently, he was taxed at the higher rates applicable to the old regime, resulting in a higher tax liability than he had anticipated.
This incident highlights the critical importance of verifying the details of your tax filing, especially when you have hired a consultant. Even a small administrative mistake can lead to unexpected financial consequences. For investors, this serves as a reminder to stay vigilant and ensure that all forms and declarations are accurate before submitting your return to the tax authorities.
Investors should watch for updates on the government's guidelines regarding rectification procedures for such errors. While the specific case of Mr Shah is unique, it underscores the need for due diligence. Taxpayers are advised to regularly check their tax credit statements and stay informed about any changes in filing norms to avoid similar discrepancies in the future.
Key takeaways
- Category: Economy.
- AI reads the tone as negative (potentially bearish) for the stock.
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