How To Switch Tax Regime: Have you not yet selected the tax regime and the company has deducted TDS. If you want to change your tax regime, do you have a chance now? Can you switch from one tax regime to another? Let’s know the answer in this article. Read the full news …
Every taxpayer has to select the tax regime before March. If they do not do so, they will automatically be selected in the new tax regime. If you have not yet selected the tax regime and the company has deducted TDS, then do not panic.
Let us tell you that Finance Minister Nirmala Sitharaman had changed the income tax slab in Budget 2023. Apart from this, she also announced the new tax regime. In this, income up to Rs 3 lakh has now been made tax free. At the same time, the limit of tax rebate has been increased to Rs 5 lakh.
In such a situation, if you have selected the new tax regime either by mistake or deliberately and now you want to go back to the old tax regime, then can you easily shift it?
Default tax regime
The default tax regime has become the new tax regime in the financial year 2023-24. In such a situation, even if a taxpayer has selected the old tax regime on April 1, 2023, the company would have deducted TDS under the default tax regime i.e. the new tax regime.
Can the tax regime change
The Central Board of Direct Taxes (CBDT) issued a circular related to the tax regime in April 2023. In this circular, they have not given any information about shifting or changing the tax regime. This means that there is no clarity yet on whether a taxpayer can change the tax regime or not.
However, according to many experts, if the company gives the taxpayer the option to change the tax regime, then the taxpayer can change or shift it. If this facility is not provided by the company, then there is no remedy for it.
You can choose the tax regime while filing ITR
According to tax experts, taxpayers can select the tax regime while filing ITR. Taxpayers can select any tax regime according to their choice.
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