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Wanting to switch tax regime? Here's how to do it while filing ITR

It's that time of the year again when many taxpayers sit down to file their income tax returns. One important decision is choosing between the old and new income tax regimes. From FY 2023–24 onwards, the new tax regime is the default option, which means if you want to stick to the old regime, you must say so clearly when filing your how can you switch from one regime to the other? Let's understand the same through this FOR SALARIED PEOPLEIf you're a salaried employee with no business or professional income, you have the flexibility to choose the tax regime every year. While filling out your ITR, usually ITR 1 or ITR 2, you'll see a question asking whether you wish to opt out of the new tax regime under section 115BAC(6). You just need to tick 'Yes' or 'No'. By default, it's set to 'No', meaning the new regime remember, this option is only open if you file your original return within the due date. If you miss the due date and file a belated return, the default new regime will automatically apply. However, you can still revise your return later if you had filed the original one on time, and change your tax regime FOR BUSINESS OR PROFESSIONAL INCOMEIf you have business or professional income and file ITR 3, ITR 4, or ITR 5, the rule is stricter. You can switch from the new regime to the old regime only once in your lifetime by submitting Form 10-IEA before the due date. If you switch back to the new regime later, you can't go back to the old regime latest ITR 4 form for FY 2024–25 asks for more details from taxpayers opting out of the new regime. For example, you'll need to mention if you filed Form 10-IEA last year, its date and acknowledgement number, and whether you plan to continue opting out this year. Even if you missed filing Form 10-IEA last year, you must now declare your choice and give the right details for the current BEFORE YOU CHOOSEBefore you tick any box or fill out any form, it's wise to compare both regimes. Check which one gives you more tax savings. The old regime offers various deductions and exemptions, while the new regime has lower tax rates but no major deductions.- EndsTrending Reel