Section 115BAC(6)

Section 115BAC(6) — the law in short

What the courts have decided on section 115BAC(6), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Adit Nilesh Shah v Deputy Commissioner of Income Tax ITATHelps taxpayerValidity unconfirmed
  My consultant filed Form 10-IEA opting me out of the new regime by mistake, but my return was computed under s.115BAC(1A). The CPC has processed me under the old regime. Can the return prevail over the form?
  Yes, on these facts. The Bangalore Tribunal directed the CPC to process the return for AY 2025-26 under the new regime under s.115BAC(1A) as opted in the return, holding that a bona fide procedural mistake in filing Form 10-IEA should not subject the assessee to a regime contrary to the choice clearly reflected in the return filed afterwards. It rejected the Commissioner (Appeals)' view that digital verification of the Form made it conclusive.
• Statutory position — s.115BAC(1A): the default personal regime from AY 2024-25 and the single Form 10-IEA opt-out CBDT Circulars & InstructionsCuts both ways
  Is s.115BAC still an option my client has to choose, and which form does he file now?
  No. From the assessment year beginning 1 April 2024, s.115BAC(1A) is the default: an individual, Hindu undivided family, association of persons other than a co-operative society, body of individuals or artificial juridical person is taxed under it unless he exercises the option in s.115BAC(6) to be taxed outside it. Opting out is what now requires a form, and that form is Form 10-IEA under Rule 21AGA; Form 10-IE governed the earlier position, for AY 2021-22 to AY 2023-24, when the regime was an option to be opted into.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.