- Introduction
- Case 1: Limitations on Opting for New Scheme and Deductions in Belated Returns
- Case 2: Unintended Consequences of 10IE Defaults
- Call for Awareness and Solutions
- Conclusion
Introduction
The recent revamp of the income tax portal was anticipated to streamline processes and provide a more user-friendly experience for taxpayers. However, amidst the upgrades, numerous glitches have surfaced, leaving taxpayers feeling helpless and frustrated. In this blog post, we shed light on two specific cases that have raised concerns among taxpayers and emphasize the need for awareness and resolution.
Case 1: Limitations on Opting for New Scheme and Deductions in Belated Returns
A significant glitch in the upgraded income tax portal lies in the restriction on opting for a new scheme beyond the deadline, even with the submission of the relevant form. Furthermore, taxpayers encountering denial of new regime benefits due to delayed filing face an additional setback – deductions are overlooked when calculating their tax liability under the old regime. This flaw extends to the computation of demand liability for belated returns, resulting in inflated demands due to the absence of deduction benefits.
This issue places an undue burden on taxpayers, raising concerns about the fairness of the system. The lack of thorough checks during return processing contributes to unjust demands that surpass what should rightfully be imposed on the affected taxpayer.
Case 2: Unintended Consequences of 10IE Defaults
In another troubling case, taxpayers who filed 10IE belatedly last year faced challenges when the benefit was not provided. Subsequently, while opting for the new regime the following year, the default setting of ‘yes’ for 10IE withdrawal creates a dilemma. Taxpayers are unable to select ‘no,’ and this default setting leads to a demand being raised by the department.
Despite filing the return on time, the inability to fix this default setting makes things even harder for taxpayers. This raises concerns about the efficiency of the system and the need for proactive measures to prevent such issues from happening in the first place.
Call for Awareness and Solutions
It is crucial for taxpayers to be aware of these glitches and potential pitfalls within the revamped income tax portal. However, the responsibility does not solely lie with taxpayers; there is a pressing need for the helplines and CPC staff to conduct thorough checks before making demands.
With the upcoming returns featuring the old regime aided by Form 10IE and the new regime set as the default option, it becomes paramount to address these glitches promptly. Awareness campaigns, clear communication from tax authorities, and proactive measures to resolve glitches can contribute to a smoother experience for all stakeholders.
Conclusion
While the revamped income tax portal aimed to enhance user experience, the prevalence of glitches has created unintended challenges for taxpayers. It is essential for both taxpayers and tax authorities to work collaboratively to address these issues, fostering an environment where filing returns is efficient, transparent, and fair. By raising awareness and advocating for proactive solutions, we can contribute to a more streamlined and user-friendly income tax system.