ITR Rules 2025: Before filing ITR, it is important to decide whether the new tax regime is beneficial for you or the old one. In the old tax regime, the benefit of many types of exemptions and deductions is available. Whereas in the new tax regime, no exemption or deduction is available.
ITR Rules 2025: The biggest confusion while filing Income Tax Return (ITR) every year is whether to choose the new tax regime or stick to the old one. The government has made the new tax regime the default in Budget 2023, but taxpayers can also choose the old tax regime if they wish.
Now the question is, is this option available every year? Can business people also change the tax regime annually? It is important for you to know the answers to these questions, because this directly affects your tax savings.
Rules for changing tax regime for salaried people
If you earn from non-business income like salary, interest or rent, then you have the option of choosing the new and old tax regime every year. That is, if you chose the new tax regime last year, then you can choose the old one this time as well. But you will have to take this decision before the last date for filing ITR (31 July 2025). According to the Income Tax Department, the option to choose the old tax regime is available only if you file the return on time.
What are the rules for those with business or professional income?
If you are associated with any business or profession, then the rules for changing the tax regime are a little strict for you. If such taxpayers choose the new tax regime once, they can return to the old tax regime only once. Once they return to the old regime, they cannot choose the new tax regime again. That is, those with business or professional income can change the regime only once.
According to Budget 2023, those who want to adopt the old tax regime will be required to fill Form 10-IEA before filing ITR. This form determines which tax regime the taxpayers are choosing and whether they are eligible for it.
ITR Filing 2025 Deadline
According to the Income Tax Department, non-audited taxpayers must file their ITR by July 31, 2025 (FY 2024-25, Assessment Year 2025-26). If a taxpayer does not file the return on time, they can file Belated Return by December 31, 2025, but will have to pay a late fee for this.
If you have filed ITR on time and later you feel that you should have chosen another tax regime, then you can file Revised Return. However, this facility will be available only to those taxpayers who filed ITR on time.
Who should choose what?
Before filing ITR, it is important to decide whether the new tax regime is beneficial for you or the old one. The old tax regime offers several exemptions and deductions such as Section 80C (PPF, EPF, Life Insurance), 80D (Medical Insurance), HRA (House Rent Allowance) etc. It may be beneficial for those who invest in tax saving instruments.
The new tax regime has lower tax slabs but no exemptions or deductions are available. It may be better for those who do not have tax saving investments or who want simple and low tax facilities.
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