Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

This tool would not just show your data, but calculate your final tax liability using real-time information from Form 26AS and the Annual Information Statement (AIS).

1. How the Proposed “Auto-Calculator” Would Work

Currently, taxpayers see their income in AIS but must manually calculate taxes or use third-party apps. The ICAI’s proposed system would:

• Pre-fill Everything: Pull salary, interest, and dividend data from your AIS/26AS.

• Instant Computation: Automatically calculate the Total Taxable Income and Tax Liability without manual entry.

• “Accept & Pay” Feature: Provide a simple “Accept” button. If you agree with the system’s math, you can pay and file instantly.

Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

2. The “Shield Against Scrutiny”

Perhaps the most significant part of the proposal is the protection from tax notices.

ICAI Suggestion: If a taxpayer accepts the system-generated calculation and pays the tax accordingly, their return should not be subject to scrutiny under Section 270(10) of the new Income Tax Act, 2025 (corresponding to the old Sec 143(3)).

This would provide a “Safe Harbour” for honest taxpayers, giving them certainty that their returns won’t be reopened for questioning later.

3. Simplifying the “Tax Regime” Choice

ICAI has also suggested a major administrative fix for the New vs. Old Regime debate:

• No More Separate Forms: Currently, opting out of the new regime requires filing a separate form.

• ITR-Integrated Choice: ICAI proposes that the option to select the regime should be part of the ITR form itself, removing an extra layer of compliance and reducing errors.

Also Read | CBSE Board 2026 Exam Study Tips: Board exams begin on February 17; these smart…

The post Budget 2026: ICAI Proposes New “Auto-Tax Calculator” to End ITR Struggles first appeared on Rightsofemployees.com.