ITR-3 old regime demand reappeared after rectification despite valid Form 10-IEA, F&O loss set-off and deductions
Need advice on recurring CPC demand after rectification despite valid Form 10-IEA and old regime selection
I filed ITR-3 for AY 2025-26 under old tax regime because I had F&O loss component.
I had validly filed Form 10-IEA for AY 2025-26 before filing the return. The form is successfully e-verified and visible in the portal.
My return included: a) Salary income b) House property loss (-2 lakh) c) F&O business loss d) HRA exemption e) 80C deduction f) 80D deduction
Initial CPC processing generated a large demand because the business loss set-off appeared to be ignored.
I checked Schedule BP and CYLA and the return clearly showed: a) current year business loss b) set-off against income c) carry-forward computation
I then: a) raised grievance b) rejected the demand c) filed a reprocessing/rectification request
After reprocessing, CPC started considering the business loss and old regime correctly, but a fresh demand again got generated.
Now the strange part: a) deductions under Chapter VI-A are showing as zero in the computation table b) but 80C and 80D are clearly visible in the return schedules and also supported by Form 16
Form 16 clearly reflects: a) HRA exemption b) old regime c) 80C d) 80D e) much lower taxable income than CPC’s recomputed taxable income
So currently I am confused whether: a) CPC processing is inconsistent b) deduction schedules are not flowing correctly into computation c) this is a known ITR-3 + Form 10-IEA issue
I already have an open grievance with CPC.
Has anyone faced a similar situation where: a) demand reappeared after rectification b) old regime was valid c) deductions were not reflected correctly in recomputation
What should ideally be the next step here?
Note: Used ChatGPT to draft.