ITR Deadline: Salaried and non-business income earners are allowed to switch between the new and old tax regimes every year, provided they decide before July 31, 2025 (ITR deadline)
ITR Deadline: While filing income tax returns (ITR), a big question that taxpayers face is whether to choose the new tax regime or the old one? From FY 2023-24 (AY 2024-25), the new tax regime has become the default option. If the taxpayer does not specifically select the old tax regime, the new tax regime will automatically apply. However, the process of choosing the tax regime depends on the source of income of the individual.
Can the tax regime be changed every year?
Salaried and non-business income earners are allowed to switch between the new and old tax regimes every year, provided they decide before July 31, 2025 (ITR deadline). The rules are stricter for those earning from business or profession. If they have opted for the new tax regime, they can revert to the old tax regime only once. Filing of Form 10-IEA is mandatory for opting for the old tax regime.
Which tax regime is better?
Taxpayers have to decide which tax regime will be more beneficial for them. The old tax regime offers benefits if you claim multiple deductions, like Section 80C: PPF, EPF, life insurance etc. Section 80D: Medical insurance, house rent allowance. The new tax regime, on the other hand, is simpler, with lower tax rates but no exemptions and deductions.
Important dates for ITR filing
July 31, 2025: Last date to file ITR without late fees. December 31, 2025: Last date to file belated returns.
Choosing the right tax regime can affect your tax savings. If you take more advantage of deductions, the old regime may be better. On the other hand, if you want a simple tax process and do not need deductions, then choosing the new tax regime will be beneficial.
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