Income tax regime change: A financial year has passed and now the workout of filing ITR is starting. After the introduction of a new tax system under section 115BAC, now there are two options in front of taxpayers- New Tax Resetim and Old Tax Regim. If there are deeds and exhalations in Old Tax Regime, then there is no dedication in the new regime but the rate of tax is low. Which tax systems are better for taxpayers, it is discussed, but there is a discussion whether the tax regime can change while filling the ITR form?
Can tax revision change?
Whether or not income tax regime can change, it is determined by which category of taxpayers you are in. Taxpayers have two categories-first salary or pensioners and other business or professional. Salarid or pensioners can change tax regime every year while filing ITRs. You have described your company as any tax regime for TDS, but you can change it according to your return while filing returns. As you have selected a new tax system with the company, but later on calculating all the deductions, you find the old tax system more beneficial, then you can choose the old tax system while filing ITR. On the other hand, taxpayers with business or profession can change the tax system only once. If they have chosen a new tax system, they can return to the old tax system only once in life and then they will not be able to return to the new tax system until their business/professional income is closed.
How to choose a new-old tax system?
While filing ITR, tax software or utility will ask a question whether you want to choose a new tax system under Section 115BAC. If you want to choose the option of a new tax system, choose ‘yes’, or ‘No’ to stay with the old system. If you choose a new tax system and your business is income, then you will have to file Form 10-EEA before filing ITR from Assessment Year 2024-25.
When will ITR filing start?
When the Central Board of Direct Taxes (CBDT) releases the updated form, the process of filing ITR usually starts in April. The form for FY 2024-25 (Assessment Year 2025–26) is not yet noted but this month it is likely. Talking about last year, the ITR form was notified in February and e-filing started in April. However, the filing for most salary taxpayers actually begins when Form-16 is found by the company by the end of May or June. Form-16 has complete details of salary and TDS during the financial year. It is mandatory to release this form every year by June 15. In such a situation, ITR filing for salary individuals usually starts from mid -June, when all the necessary documents come to them.
Old or New Tax Reseam? Where will more tax be saved! These points will come to work while filing ITR by 31 July