New Delhi: Submitting Earnings Tax Returns (ITR) might 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 Price range 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 influence your tax financial savings.

You may swap between the previous and new tax regimes yearly in case your revenue comes from wage, curiosity, or lease (non-business revenue). So, in the event you picked the brand new tax regime final yr, you’ll be able to return to the previous one this yr. Nonetheless, this alternative should be made earlier than the ITR submitting deadline (July 31, 2025). The Earnings Tax Division states which 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 resolve to change to the previous one, they will’t revert to the brand new regime once more. They get just one probability to change again.

As per Price range 2023, taxpayers choosing the previous tax regime should submit Kind 10-IEA earlier than submitting their ITR. This way confirms their chosen tax regime and eligibility. Salaried people and people with non-business revenue can swap between the previous and new tax regimes yearly. Nonetheless, they need to make their choice earlier than the ITR submitting deadline. If you wish to proceed with the previous tax regime, you should go for it earlier than the deadline beneath Part 139(1) of the Earnings Tax Act.

ITR Submitting 2025: Key Deadlines You Must Know

The Earnings Tax Division has set July 31, 2025, because the deadline for taxpayers who don’t require an audit to file their Earnings Tax Return (ITR) for FY 2024-25 (AY 2025-26). When you miss this deadline, you’ll be able to nonetheless file a belated return by December 31, 2025, however a late payment will apply. Already filed your ITR however wish to swap your tax regime? You may file a revised return, however provided that your authentic return was submitted earlier than the due date.

Which Tax Regime Ought to You Select?

Earlier than submitting your ITR, it is vital to resolve whether or not the previous or new tax regime is extra useful for you.

Previous Tax Regime: Permits varied exemptions and deductions, together with:

• Part 80C (PPF, EPF, Life Insurance coverage)
• Part 80D (Medical Insurance coverage)
• HRA (Home Hire Allowance)
• New Tax Regime: Affords decrease tax charges however doesn’t enable most exemptions and deductions.

Select properly based mostly in your revenue, investments, and tax-saving objectives.