Mumbai: The city bench of the Income Tax Appellate Tribunal (ITAT) has held that when the tax department treats a taxpayer as having opted for the old income-tax regime by virtue of his having filed Form 10-IEA, eligible deductions under the old regime must be allowed to this taxpayer.
Taxpayers having business or professional income who wish to opt out of the default new tax regime and chose the old tax regime have to file Form 10-IEA. The new tax regime is now the default tax regime. several deductions, such as those for various investments, insurance premiums or bank interest, which is available to senior citizens, are not allowed While the tax rates are lower under this regime. Owing to the lower tax rates, many taxpayers benefit by opting for the new regime. While others who have various deductions to claim stand to benefit by opting out of the new tax regime and filing the tax return under the old regime. The taxpayer then approached the ITAT, contending that the I-T return and the form filed by him had created a conflict. As the CPC had processed his return based on the old regime, he sought deductions under Sections 80C (available for eligible investments), 80D (available for eligible health insurance premium) and 80TTB (available to senior citizens against bank interest), which are available under the old tax regime, subject to the applicable ceilings and conditions. You Can Also Check: Gold Rate in Mumbai | Silver Rate in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai | Mumbai AQI | Weather in Mumbai | Petrol Price in Mumbai | Diesel Price in Mumbai | CNG Price in Mumbai | LPG Price in Mumbai