New Delhi, Sept. 7 -- A Bengaluru taxpayer faced an additional tax demand of about Rs.1.23 lakh after his tax consultant mistakenly filed Form 10-IEA, indicating that he had opted out of the new tax regime. The Income Tax Appellate Tribunal (ITAT), Bangalore, has now allowed his appeal and directed the tax authorities to process his return under the new tax regime, according to an ET report.

The taxpayer, identified as Mr Shah of Ali Asker Road, Bengaluru, had declared total income of Rs.32.55 lakh. He had prepared his income-tax return under the new tax regime. However, on 30 September 2025, his consultant filed Form 10-IEA, which indicated that Shah had opted out of the new regime and chosen the old tax regime.

Shah explained that the...