The same time of the year has come again when salary people start preparing to file their income tax return (ITR). Soon your employer is going to get Form 16, which will be necessary for your tax filing. After receiving Form 16, most of us start collecting their documents and calculating taxes.
But if you first told your employer during the financial year that you will choose Old Tax Regime, and now after checking your income and deduction, you feel that the new tax regime is more beneficial, then you can change it? Let’s understand in detail.
Can Tax Resetim change while filing ITR?
Yes, according to the Income Tax Rules, salary people can change tax regime while filing their ITR. Whether you have chosen any tax regime for deduction during the financial year, you have full right to change your choice while filing returns.
Meaning, if you have deducted tax under the old tax regime, but now you are feeling better new tax regime, then you can adopt a new registration while filing ITR. Similarly, those who were paying tax under the new tax regime, even if they want, they can switch to the old tax regime while filing the returns.
Change in new income tax return form
According to the new system, the income tax return form is default on the basis of new tax regime. When you fill ITR, the form asks you if you want to ‘get out’ under section 115bac?
If you choose ‘yes’, you can file your return under Old Regime. If you choose the option of ‘no’, then your filing will be done under the new Tax Regime.
Section 115BAC is actually part of the Income Tax Act that determines tax slabs and rules under the new tax regime. There are low tax rates in this but most of the deeds and discounts (such as 80C, HRA, LTA etc.) have been abolished.
It is important to take care of the deadline
It is very important to understand that you can change the tax regime only if you enter your ITR fixed deadline. If you file a return after a date, that is, you file late returns, then you will not have the option to choose the old tax regime.
In such cases, ITR will be processed according to the new tax regime by default and you will not be able to switch even if you want.
Deadline to file ITR
The last date for filing ITR depends on what type of taxpayer you are. usually:
The last date for individuals, HUFS, AOPS, Bois, whose accounts are not audited, is 31 July 2025.
The last date for businessmen, firms and companies who have to audit accounts is 31 October 2025.
If you have an international transaction and you fall under section 92E, then the last date for you is 30 November 2025.
If you miss these deadlines, you can file a billet ITR with late fine till 31 December 2025. Apart from this, updated returns can also be filed by 31 March of the fourth assessment year.
The audit report for audited accounts has to be submitted by 30 September, so that ITR can be filled by 31 October.
Noted things
Timely filing: The option to change the tax regime will be available only when you file returns on time. There will not be a chance to choose the old tax regime if the dew date is missed.
Assess correctly: Before filing ITR, carefully assess which tax regime will be beneficial for you. Compare Didctions, Rebate and Tax Liability.
Keep the document ready on time: Form 16, Investment Proofs, Loan Certificates and other important documents should be collected in time so that there is no problem in the last time.
conclusion
If you want the process as well as the process as well as the process, then choose the correct tax regime before filing ITR. Take special care of the deadline and file your return as soon as possible. Remember, by correct decisions and timely filing you can not only save tax, but can also avoid penalty and other legal problems in the future.
