ITR Submitting 2025: How Typically Can You Swap Between New And Outdated Tax Regimes? Test | Private Finance Information
New Delhi: Submitting Revenue Tax Returns (ITR) may be complicated, particularly when selecting between the previous and new tax regimes. Whereas the federal government made the brand new tax regime the default choice in Finances 2023, taxpayers can nonetheless go for the previous one if they like. However can you turn between tax regimes yearly? And what about enterprise homeowners—have they got the identical flexibility? Understanding these guidelines is essential, as your choice can straight impression your tax financial savings.
You possibly can change between the previous and new tax regimes yearly in case your revenue comes from wage, curiosity, or lease (non-business revenue). So, for those who picked the brand new tax regime final 12 months, you possibly can return to the previous one this 12 months. Nevertheless, this selection should be made earlier than the ITR submitting deadline (July 31, 2025). The Revenue Tax Division states that you could go for the previous tax regime provided that you file your return on time.
For these incomes from enterprise or skilled revenue, switching tax regimes isn’t as versatile. People, HUFs (Hindu Undivided Households), AOPs (Affiliation of Individuals), BOIs (Physique of People), and Synthetic Juridical Individuals can not change their tax regime yearly. In the event that they go for the brand new tax regime and later determine to change to the previous one, they will’t revert to the brand new regime once more. They get just one likelihood to change again.
As per Finances 2023, taxpayers choosing the previous tax regime should submit Type 10-IEA earlier than submitting their ITR. This kind confirms their chosen tax regime and eligibility. Salaried people and people with non-business revenue can change between the previous and new tax regimes yearly. Nevertheless, they need to make their choice earlier than the ITR submitting deadline. If you wish to proceed with the previous tax regime, you have to go for it earlier than the deadline below Part 139(1) of the Revenue Tax Act.
ITR Submitting 2025: Key Deadlines You Must Know
The Revenue Tax Division has set July 31, 2025, because the deadline for taxpayers who don’t require an audit to file their Revenue Tax Return (ITR) for FY 2024-25 (AY 2025-26). In the event you miss this deadline, you possibly can nonetheless file a belated return by December 31, 2025, however a late charge will apply. Already filed your ITR however need to change your tax regime? You possibly can file a revised return, however provided that your unique return was submitted earlier than the due date.
Which Tax Regime Ought to You Select?
Earlier than submitting your ITR, it is essential to determine whether or not the previous or new tax regime is extra helpful for you.
Outdated Tax Regime: Permits numerous exemptions and deductions, together with:
- Part 80C (PPF, EPF, Life Insurance coverage)
- Part 80D (Medical Insurance coverage)
- HRA (Home Lease Allowance)
- New Tax Regime: Gives decrease tax charges however doesn’t permit most exemptions and deductions.
Select correctly primarily based in your revenue, investments, and tax-saving objectives.
