The season of filing income tax return (ITR) has started. Many taxpayers have also filed their ITRs. After getting Form 16, salary taxpayers have also started filing returns. Earlier this week I met Neha Jain. A few years ago we both worked in the same company. Seeing them upset, I asked if there was any problem with him. At first she did not say, but after some time she said that she wants to ask something. I said that she can feel free to ask.
What is Old and Old Rezim?
Jain said that his employer gave her digital form 16 (Digital Form 16) It has been issued. That income tax return (Income tax return ) She wants to file but she does not know which regimen will be good for her? The second question was that at the beginning of the last financial year, she told her employer that she wanted to use Old Regim. The question is, can she change in it now?
What is the rule for taxpayers?
First I asked Jain to come out of anxiety. Actually, this problem is not just about Jain. There are millions of salary taxpayers who are confused about this question. The reason for this is the old and new regimen of income tax. This system was implemented about 5 years ago. Now taxpayers have the option that he can choose any one of the new and old with his will. Deduction is benefited in the old regimen. Especially on section 80C, 80D and home loan principal and deduction on interest are benefited. These benefits are not available in the new regimen.
What is the difference between the old and new regimen?
Jain has been using the old reizards of income tax from the beginning. Actually, he has done term insurance. Health policy has been purchased. She also makes tax savings investment every year under section 80C. These include Mutual Fund’s Tax Savings Scheme and PPF. Now someone has told them that despite getting deduction on tax savings investment, if she uses the new regimen of income tax, she will have to pay less tax. That is why he is confused.
Can taxpayers make changes in the regimen?
If Neha feels that she will have to pay less tax if she has to pay less tax by using a new regimen to file an income tax return of Financial Year 2024-25. It is important to understand that even if you have told your employer about the use of the old regimen at the beginning of the last financial year, then you can use the new regimen instead of the old at the time of income tax return. Yes, it is true that your TDS will be deducted according to the old regimen of your employer. But, if your tax is being reduced by the use of the new regim, then you will get back as a refund of TDS deducted.
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What does income tax rule say?
Tax experts say that if salary taxpayers do not have income from business i.e. only income from salary, bank interest etc., then they can change their reizards of income tax every year. There is no limit to how many times he can change. This means that if you do a job and told your employer in April 2024 that you will use the old regimen in April 2024, then you still use the new regim at the time of ITR filing this year. Therefore, Jain has no need to worry. She looked satisfied after telling me.