New tax regime rejected with demand notice

Hello, I had opted for the new regime when filing my returns (ITR 2) for FY 2020-21 as my tax calculation was lower in new regime. I did not file form 10IE as I only had income from salary (cash + foreign stocks), interest from savings account, and dividend from stocks.

I received a demand notice a few days ago, and my tax was recomputed without new regime (using old regime) :frowning: . Should I send my return for reprocessing?

@Sakshi_Shah1 can you help ?

Hello @quickoman

Any person opting for the new tax regime should file Form 10IE ONLY if they have income from business or profession. Based on your income situation, you were not required to file Form 10IE on the income tax website.Thus, you can submit the return for re-processing and respond to the demand notice with an appropriate response.

Alternatively, you can file a Rectification Return on the income tax website and wait for it to get correctly processed.

If you need further help, you can take help of an expert - Ask an Expert

1 Like

My filing status shows “Processed with demand due”, but strangely there is no demand notice under “Response to Outstanding Demand” when I got to Pending Actions.

I will file a rectification request for reprocessing.

Thank you @Sakshi_Shah1 for your help!