Updated return (New Regime)

[Padmanathan KV]

An assessee having salary income had filed return for AY 2022-23 FY 2021-22 under the new scheme u/s 115BAC within the sec. 139(1) due date.

While the said filing, the assessee omitted to report Savings A/c interest in the return. Now, he has received e-compaign mail since the interest income was reflected in AIS.

Now, while filing the updated return:-

1. whether the entire income including salary has to be reported under old regime and thr pay additional tax (i.e. inuding the difference tax between old and new scheme) (this is how software is computing)

2. Whether interest income alone is to be shown under old regime (if yes, how?)

3. Whether interest income also can be declared under the new regime since it was originally opted within due date prescribed (if yes, how?) (ideal situation in my opinion)

[GUNASEKARAN K]

1. Yes, The entire income along with interest income must be reported and can claim deduction u/s 80TTA (Please check the limit) & Pay additional Tax liability if arrives;

2. No

3. Under New Tax Regime deduction u/s 80TTA - not allowed. Hence better to go for Old Tax regime to file revised return.

[Padmanathan KV]

Sir,

So, even though I had opted for now new regime in time (which is beneficial for me), I have to now file updated return under old regime because some income was missed?

The difference tax payable on account of interest is only approx. Rs 4000 where as the difference tax on salary due to shifting to old regime is Rs.19,000.

For declaring tax of 4,000 i have to pay additional 19,000 doesnt seem to be logical

[GUNASEKARAN K]

Dear Padmanathan,

Its is optional only to file the revised return in old regime. Your may file the revised return in New regime. Please check the beneficial side to save the extra additional tax.

[Padmanathan KV]

Gunasekaran Sir,

As per your advice, I was able to successfully file the updated return selecting New regime (which is beneficial to the asseessee). In the ITR, I had to select ITR filed under 139(1) and give details of acknowledgement number and date of filing. The portal also accepted the updated return under new regime without any validation errors.

Once again, thank you so much for your kind advice.

Regards

Padmanathan

AI Summary

Tax regime choice: omission of savings interest does not automatically require switching regimes; revised return may retain new regime if beneficial. Assessee originally opted for the new tax regime but omitted savings account interest subsequently reflected in AIS. All income must be included in a revised return; savings account deduction available under the old framework is not permitted under the new regime, so claiming that deduction typically requires filing under the old regime. Filing under the old regime is optional; a revised return retaining the new regime may be filed if it is tax beneficial. The tax portal in the reported instance accepted an updated return filed under the new regime.