How possible is it to switch from new tax regime to old tax regime? Know complete details here. Switch from new tax

The financial year 2024-25 has started. Now taxpayers have started preparing to fill ITR. Taxpayers in India can now file Income Tax Return (ITR) in two ways. Apart from the old tax regime, taxpayers have also got the option of the new tax system. In such a situation, a question is emerging among the taxpayers that if the income tax return is filed with the new tax system, will they be able to file the return with the old tax system next time or not. There is also a question whether those who have filed ITR under the new tax regime last year can make changes now. Today complete detailed information about this will be available here.

People whose source of income is different from business and profession can change the option between the old tax system and the new tax system every year. This option should be used while filing income tax return and can be changed every year, provided the income tax return is filed within the due date.

Only 1 chance to change the tax system

However, for individuals earning income from business and profession, the tax system chosen in the previous tax return is applicable for subsequent years also. The tax system can be changed only once in a lifetime by submitting an application in the prescribed Form 10IE on or before the due date of filing income tax return under section 139(1) of the Income Tax Act. To put it in simple language, the tax regime under which you are filing your ITR. It can be changed only once in future years.

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New tax regime is best for them

The new tax system is a much easier and simpler tax system with limited exemptions. Which tax system is more beneficial depends on the deductions available in the case of a taxpayer. The new tax system will be more beneficial for taxpayers who earn money from salary only with deduction under Section 80C of the Income Tax Act.

Features of old tax regime

For other taxpayers with eligible deductions like interest on home loan or Home Rent Allowance (HRA), the old tax system may prove to be more beneficial. Additionally, it should be noted that the tax system chosen by the employees while giving the declaration to the employer is not final and can be changed while filing the income tax return.

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Brijesh Pratap
Brijesh Pratap

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