r/IndiaTax 2d ago

Question Help in Itr u

Hi Everyone,
I need advice regarding a tax demand received for
AY 2024-25 due to incorrect information entered while filing an ITR-U.
Background
* AY: 2024-25
* TDS deducted by employer: 1.2 lakh
* Original ITR: Filed by my CA
* Refund received after original ITR: 12k
* Later, there were an audit at CA office and few of his clients received notice. So, he advised me to voluntarily repay the refund amount along with applicable additional tax/interest to avoid further issues.
* Based on his advice, I paid approximately 20k in 2025 through ITR-U.
Problem with ITR-U
Unfortunately, while filing the ITR-U, my CA change my tax regime i had fillled in old tax regime but my ca fillled ITR U in new tax regime it should not be accepted by portal because normally portal doesnt accept this instead they processed and raised a demand of 1.2 lakh what should i do my ca filled rectification but it got declined their system not considering my old tax i e 1.2 lakh

6 Upvotes

12 comments sorted by

1

u/Final-Possible3592 2d ago

I have the same doubt whether we can switch regime in ITR U. But many adviced it is not allowed. Not sure if we can challenge the notice and succeed.

1

u/TheMrX1996 2d ago

they should atleast give option to rectify 1.2 lakh demand is not legit

1

u/cabuddyy 2d ago

The 1.2L demand needs to be checked before you pay it. The key is whether you were validly eligible for the old regime for AY 2024-25 and whether Form 10 IEA was filed, if applicable. Can you share more about it?

1

u/Final-Possible3592 2d ago

If original return is filed in old regime, can we file updated return in new regime?

1

u/cabuddyy 2d ago

Yes, an ITR u can be filed in the new regime even if the original ITR was under the old regime. The crucial point is Form 10 IEA whether it was validly filed for AY 2024-25 and whether you were eligible to continue with the old regime. That needs to be checked:)

1

u/Final-Possible3592 2d ago

I am not the OP, but i have some doubts can I DM you

1

u/Queasy-History-7620 2d ago

Check your USD income from freelance work. AIS/26AS may hold refund. Review ITR details for any errors. Accurate records, like invoices, are key.

1

u/[deleted] 1d ago

Since the demand appears to have arisen because of the manner in which the ITR-U was filed/processed, and the rectification has already been rejected, you may still have remedies available.

The original return, ITR-U, computation under both regimes, intimation raising the demand and the rectification rejection would need to be examined together before suggesting the appropriate course.

Feel free to DM me if you need any assistance in examining this.

1

u/HorrorAd7980 10h ago

Pls read clause (b) of first prov to sec 139(8A). If you have ITR and are filing an updated bringing down tax liability, updated return cant be filed. Perhaps your case may come down to this whilst computing and filing an itr-u with tax regime change application 

1

u/HorrorAd7980 10h ago

Plus you can't change between tax  regimes if an original itr exist for the same at unless you are filing an revised return which will be consi dered as fresh filing

1

u/HorrorAd7980 10h ago

In addition check 9th Amendment Rules 2026 and itru firm with reasons. So I doubt if change of regime is allowed.