Can I Switch to New Regime When Filing Revised ITR?

No, once you have filed your initial ITR, you cannot switch to a new tax regime if you file a revised ITR. After the due date of ITR filing, which is 31st July, you are locked into the tax regime you originally selected.

Changes in Tax Regime for Salaried Individuals

It is important to note that salaried individuals have the flexibility to switch between the new and old tax regimes on an annual basis. Even if you are enrolled in the new tax regime for TDS throughout the year, you can easily switch your tax regime while filing your ITR for the previous year. This can be done without any complications provided you only have salary income.

Switching Tax Regimes While filing ITR

Yes, you can switch from the old tax regime to the new one (or vice versa) when filing your ITR. However, this option is limited to individuals who only have salary income. Those with business income are not permitted to change their tax regime once they have opted for a specific regime.

Understanding the New Tax Regime (Section 115BAC)

For those eligible to opt into the new tax regime (Section 115BAC), you must file Form 10IE before or at the time of filing your IT Return. This form is crucial for declaring your intention to switch to the new tax regime. It's important to fill out the acknowledgement of Form 10IE on your IT Return form, specifically mentioning your change of tax regime if you are opting in or out.

Furthermore, if you choose to revise your IT Return, the original return is withdrawn, and the revised return takes its place. Therefore, before revising your IT Return, you must file Form 10IE and include the relevant details in your revised ITR.

Eligible Individuals for New Tax Regime Switching

Individuals and Hindu Undivided Families (HUF) without business income have the option to opt in or out of the new tax regime every year. This flexibility allows you to make smart financial decisions based on your income and tax liability for each financial year.

To stay informed and fully understand the intricacies of tax regimes, we recommend visiting the following blog for detailed insights:

Tax Regime Guide Blog