ITR Filing 2024: How many times can taxpayers switch back to old tax regime

New Delhi: If you are planning to file Income Tax Return (ITR), you must know that the Default Tax regime for Assesmeent Year 2024-25 and onwards is New Tax Regime. It means that if you do not opt for Old Tax Regime manually then your ITR will be filed as per the New regime. However, you can always switch to Old Tax Regime from New Tax regime. Taxpayers who earn income that isn’t from business can choose between new and old tax rules each year. However, to select the Old tax regime, they need to submit Form 10-IEA or check ‘opt out of new regime’.

How many times you can switch tax regimes?

Taxpayers who earn money from their business or profession can’t switch tax regimes every year.  They can only switch back once, if they decide to leave the New Tax regime. After exercising their choice to switch, they can’t go back to the old regime again in the future.

Taxpayers who earn income that isn’t from a business can choose each year between the new and old tax rules. This year, the new tax rules are automatically used by default. Any decision made last year won’t affect this year’s choice.

How to select Old Tax regime?

As per the website of Income Tax Department, Individual, HUF, or AOP having income from business or profession need to mandatorily submit Form 10-IEA for Opting out or Re-entering in to New Tax regime. Once submitted, they can then pay Income Tax according to the Old Tax regime. Form 10-IEA is used to declare the choice of tax regime when filing Income Tax returns.

Who should not submit Form 10-IEA?

Taxpayers who don’t earn from business or profession can choose to ‘Opt out of the new regime’ directly on their ITR form without needing to file Form 10-IEA. Form 10-IEA is required for those filing ITR-3, ITR-4, or ITR-5. Individuals and HUFs using Form ITR-1 or ITR-2 do not need to submit Form 10-IEA.

 ITR 2024: New Tax regime is the default Tax regime. However Taxpayers not earning income from business can decide each year whether want to opt for New Tax regime or Old Tax regime  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today