New Delhi: For the financial year 2023-24 (FY24) and the assessment year 2024-25 (AY25), the new Income Tax regime is the default tax regime for the taxpayers in India. If the taxpayer doesn’t select the old tax regime at the time of filing Income Tax Returns (ITR) before the deadline of July 31, 2024, the I-T Department will consider the new regime as the default regime. The I-T Department will scrutinise the ITR filed based on the tax slabs mentioned in the new regime.
If the tax payer wanted to claim deductions and exemptions on investments made by him in FY24, he would have to let go off this opportunity if the new tax regime remains his default option. For example, if the taxpayer had made investments to the tune of Rs 1.50 lakh in FY24, and wanted to claim tax deductions under Section 80c of the Income Tax Act, 1961, it is only possible if th eperson selects old tax regime before the default tax regime last date gets activated on July 31 for ITR filing 2024.
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How to choose old tax regime as default regime?
Salaried individuals will have to select the old tax regime as default option in the ITR form. While, individuals with business or profession income will have to submit Form 10-IEA to select the old tax regime. Now let’s see how such taxpayers can submit the Form 10IE to make the old tax regime as their default option.
How to file Form 10IE on the Income Tax Portal?
Go to the Income Tax e-Filing Portal https://www.incometax.gov.in/iec/foportal/
Log in using your credentials
Click on “e-File”
Select “Income Tax Forms”
Select Form 10IE from the list of forms shown
Enter the PAN details, assessment year for which the form is being filed
Mention all relevant information asked for self-declaration
Then, complete the e-verification process
Then, click on “Submit”
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Remember, salaried individuals can shift between the old and new tax regime once in every fiscal. While, individuals with business or professional income cannot go back to the old tax system in subsequent fiscals once they have selected the new tax regime at the time of ITR filing in any given fiscal.
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New Income tax system is the default regime for ITR filing 2024. Tax payers must select the tax regime of their choice before the default tax regime last date of July 31, 2024 gets activated. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
