ITR Filing 2025: The process of filing income tax returns for financial year 2024–25 (assessment year 2025–26) is going on. In such a situation, there is a confusion in front of the taxpayers whether they choose the old tax system or file the return in the new tax system made.
The new tax system was launched by the government in 2020. There are less tax slabs in this, but most discounts and cuttings are not available. At the same time, the old system can still prove to be better for taxpayers who want to take advantage of cuttings like 80C, HRA or 80D.
Salarid taxpayers can change every year
Those who file under ITR-1 or ITR-2 can change the tax system every year. In ITR form, he will be asked, ‘Do you want to come out of the new tax system under section 115bac (6)?’ On giving ‘YES’, they will come into the old system, while on choosing ‘NO’, they will remain in the new default system.
Limited options for business taxpayers
If the taxpayer is showing business or professional income under ITR-3 or ITR-4, it can only return once in the old system. Once returning to the new system, it will not be possible to go to the old system again.
For this, he has to file Form 10-EEA, which is required to be filed before ITR and by 15 September 2025. This form can be filled online by visiting the portal by visiting the portal.
Form 10-EEA filling process
- Log in on incometax.gov.in (via PAN)
- E-File> Income Tax Forms> File go to Income Tax Forms.
- Search Form 10-EEA and click on ‘File Now’
- Choose Assessment Year 2025–26.
- Confirm your income type (business/profession) and change.
- Check the details and submit to Aadhaar OTP, EVC or DSC.
After submitting, you will get an ACKNOWLEDGEMENT Number and Transaction ID.
The new system will be applicable if you do not choose options
If someone selects the tax system in the taxpayer form, its tax liability will be calculated according to the new default system. In such a situation, it can prove to be harmful for those who have planned the year investment and deduction according to the old system.
What is the advice of tax experts?
According to the tax expert, before filing the returns, both of them must compare your tax liability in the tax system. For this, the help of online tax calculator or an expert can be taken so that due to the wrong option, there is no more tax. The Income Tax Department has introduced tax calculator, so that you can understand which tax regimen will be better for you.
Also read: ITR Filing 2025: These mistakes will be heavy in income tax returns, can have to be paid up to 200%; Learn how to avoid