CPC processed my ITR-3 under the new tax regime saying Form 10-IEA wasn't filed, but I had already filed it last year
Hi everyone,
I'm looking for some guidance on an issue with my ITR processing.
- AY: 2025-26
- ITR: ITR-3
- Business income: Yes (intraday trading)
I had opted out of the new tax regime by filing Form 10-IEA in AY 2024-25. My understanding is that once Form 10-IEA is filed, it does not need to be filed again every year unless I choose to switch back to the new regime. I have filled same details with Form 10-IEA acknowledgement in the ITR 3 form.
However, while processing my AY 2025-26 return, CPC has sent the following remark:
>On perusal of the Return of Income filed, you have exercised the option of "Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed. However, the Form 10IEA has not been filed under sub-section (1) of section 139 for furnishing the return of income. Hence, your return of income will be processed as per the provisions of section 115BAC (ie., under the new tax regime) and deductions/ exemptions and tax rates as per the said provision will be allowed.
This is confusing because I had already filed Form 10-IEA in the previous assessment year.
Has anyone faced a similar issue?
- Is this a CPC processing error?
- Is the correct next step to file a rectification request, or do I need to raise a grievance or file an appeal?
Any advice or similar experiences would be greatly appreciated. Thanks!