Income Tax 10 September 2026
Taxpayers Penalized for Choosing Old Regime by Mistake
Taxpayers who mistakenly opted for the old income tax regime for Assessment Year 2026-27 are now receiving unexpected tax demands. The error often stems from confusion over the new regime's thresholds and audit limits, leading to higher liability and a need for corrective action as outlined by tax experts.
Taxpayers who inadvertently selected the old tax regime for AY 2026‑27 are facing fresh tax notices. The mistake usually arises from misunderstanding the new regime thresholds and audit limits.
- Section 44AB audit limits apply; choosing the old regime can trigger a higher tax liability.
- Correct the election before filing to avoid the extra demand.
- CA Club India recommends reviewing Form 3CA/3CB and consulting a tax professional.
Need help understanding this update?
Connect with our domain experts instantly via WhatsApp for customized legal guidance.