The income tax return form, by default, applies to the new regime. It inquires from the taxpayers whether they wish to come out under Section 115 BAC. Selecting ‘Yes’ transfers them to the old tax regime, whereas a ‘No’ assures they’re remaining in the new one.
The income tax filing season has arrived, and for salaried employees, it is time to gather necessary documents, beginning with Form 16 from their employer. While you review your income and deductions for the year, you may start considering whether the old or new tax regime provides greater savings.
HOW TO CHANGE THE TAX REGIME?
The income tax return form, by default, applies to the new regime. It inquires from the taxpayers whether they wish to come out under Section 115 BAC. Selecting ‘Yes’ transfers them to the old tax regime, whereas a ‘No’ assures they’re remaining in the new one.
The income tax guidelines explicitly mention that salaried taxpayers may opt for the old or new tax regime when filing their ITR, though they may have chosen a different one for TDS (tax deducted at source) during the year.
The income tax guidelines explicitly mention that salaried taxpayers may opt for the old or new tax regime when filing their ITR, though they may have chosen a different one for TDS (tax deducted at source) during the year.
Therefore, in case you asked your employer to deduct tax on the old scheme, you have the option of availing of the new regime when you present your return and vice versa.
But you can only choose the old tax regime if you file your ITR on or before the due date.
If you miss the deadline and file a belated return, the income tax portal won’t let you pick the old regime. Your ITR will then be processed under the new tax regime by default.
If you miss the deadline and file a belated return, the income tax portal won’t let you pick the old regime. Your ITR will then be processed under the new tax regime by default.
WHAT IS SECTION 115 BAC?
Section 115 BAC is the section of the Income Tax Act that deals with the tax slabs and provisions under the new tax regime. It provides you with lower tax rates but takes away most of the deductions and exemptions.
LAST DATE TO FILE YOUR ITR
The date of filing your Income Tax Return (ITR) varies with the type of taxpayer you are. For general individuals, HUFs, AOPs, and BOIs whose accounts are not required to be audited, the due date of filing ITR is July 31.
Entities, firms, and companies requiring their accounts to be audited have to file their ITR by October 31, while those under Section 92E are given time until November 30.
In case you miss these due dates, you can still submit a belated or amended ITR by December 31. Also, a revised return can be submitted till March 31 of the fourth year from the close of the concerned assessment year.
Entities, firms, and companies requiring their accounts to be audited have to file their ITR by October 31, while those under Section 92E are given time until November 30.
In case you miss these due dates, you can still submit a belated or amended ITR by December 31. Also, a revised return can be submitted till March 31 of the fourth year from the close of the concerned assessment year.