Attention Taxpayers and Professionals! Tax season is upon us, and it’s essential to stay informed about the latest updates. One crucial matter to take note of is the due date to opt for the Old Tax Regime. Taxpayers and professionals alike should be aware of the significance of this deadline and ensure they are well-prepared. Understanding the implications of this decision is vital, and seeking professional advice if needed can make a significant difference in managing your taxes effectively. Stay informed, stay proactive, and make the best choice for your financial well-being.
Regarding the due date to opt for the Old Tax Regime
1. Starting from FY 2023-24, the new tax regime will become the 𝐝𝐞𝐟𝐚𝐮𝐥𝐭 𝐨𝐩𝐭𝐢𝐨𝐧, meaning it will automatically be a 𝐩𝐫𝐞𝐬𝐞𝐥𝐞𝐜𝐭𝐞𝐝 𝐨𝐩𝐭𝐢𝐨𝐧 for taxpayers in the ITR form.
2. The Salaried taxpayers (having income other than business or profession) can 𝐨𝐩𝐭 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐝𝐢𝐫𝐞𝐜𝐭𝐥𝐲 𝐢𝐧 𝐭𝐡𝐞 𝐈𝐓𝐑 𝐟𝐨𝐫𝐦. There is no need to file any separate form like Form-10 IEA. However, they can 𝐞𝐱𝐞𝐫𝐜𝐢𝐬𝐞 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐮𝐧𝐭𝐢𝐥 𝐨𝐧 𝐨𝐫 𝐛𝐞𝐟𝐨𝐫𝐞 𝐭𝐡𝐞 𝐝𝐮𝐞 𝐝𝐚𝐭𝐞 under section 139(1) i.e., 𝐮𝐩 𝐭𝐨 𝟑𝟏𝐬𝐭 𝐉𝐮𝐥𝐲. 𝐈𝐭 𝐦𝐞𝐚𝐧𝐬 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐜𝐚𝐧𝐧𝐨𝐭 𝐛𝐞 𝐨𝐩𝐭𝐞𝐝 𝐟𝐨𝐫 𝐟𝐢𝐥𝐢𝐧𝐠 𝐚 𝐛𝐞𝐥𝐚𝐭𝐞𝐝 𝐈𝐓𝐑.
3. Salaried taxpayers can opt between the new and old tax regimes each financial year. 𝐒𝐰𝐢𝐭𝐜𝐡𝐢𝐧𝐠 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐭𝐡𝐞 𝐭𝐰𝐨 𝐨𝐩𝐭𝐢𝐨𝐧𝐬 𝐢𝐬 𝐟𝐫𝐞𝐞𝐥𝐲 𝐚𝐥𝐥𝐨𝐰𝐞𝐝.
5. 𝐒𝐚𝐥𝐚𝐫𝐢𝐞𝐝 𝐭𝐚𝐱𝐩𝐚𝐲𝐞𝐫𝐬 𝐰𝐡𝐨 𝐝𝐢𝐝 𝐧𝐨𝐭 𝐨𝐩𝐭 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐰𝐡𝐢𝐥𝐞 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐧𝐠 𝐓𝐃𝐒 𝐛𝐲 𝐭𝐡𝐞 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐫 𝐚𝐧𝐝 𝐭𝐡𝐞𝐢𝐫 𝐅𝐨𝐫𝐦 𝟏𝟔 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐚𝐜𝐜𝐨𝐫𝐝𝐢𝐧𝐠 𝐭𝐨 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐧𝐞𝐞𝐝 𝐧𝐨𝐭 𝐰𝐨𝐫𝐫𝐲 𝐚𝐧𝐝 𝐜𝐚𝐧 𝐝𝐢𝐫𝐞𝐜𝐭𝐥𝐲 𝐬𝐰𝐢𝐭𝐜𝐡 𝐭𝐨 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞 𝐰𝐡𝐢𝐥𝐞 𝐟𝐢𝐥𝐢𝐧𝐠 𝐭𝐡𝐞 𝐈𝐓𝐑.
6. Taxpayers having income from business or profession shall file Form-10 IEA on or before the due date under section 139(1) i.e., 𝐮𝐩 𝐭𝐨 𝟑𝟏𝐬𝐭 𝐉𝐮𝐥𝐲 𝐢𝐟 𝐧𝐨𝐭 𝐥𝐢𝐚𝐛𝐥𝐞 𝐭𝐨 𝐚𝐮𝐝𝐢𝐭, and 𝐮𝐩 𝐭𝐨 𝟑𝟏𝐬𝐭 𝐎𝐜𝐭𝐨𝐛𝐞𝐫 𝐢𝐟 𝐥𝐢𝐚𝐛𝐥𝐞 𝐭𝐨 𝐚𝐮𝐝𝐢𝐭 to opt old tax regime or re-enter new tax regime.
7. If taxpayers file Form-10 IEA by 31st July, they can opt for the old tax regime even in a belated return.
8. taxpayers having income from business or profession cannot opt-out and opt-in to the new tax regime every year. 𝐎𝐧𝐜𝐞 𝐨𝐩𝐭𝐞𝐝 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞, 𝐭𝐡𝐞𝐲 𝐡𝐚𝐯𝐞 𝐚 𝐨𝐧𝐜𝐞-𝐢𝐧-𝐚-𝐥𝐢𝐟𝐞𝐭𝐢𝐦𝐞 𝐨𝐩𝐭𝐢𝐨𝐧 𝐭𝐨 𝐬𝐰𝐢𝐭𝐜𝐡 𝐛𝐚𝐜𝐤 𝐭𝐨 𝐭𝐡𝐞 𝐧𝐞𝐰 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞. 𝐀𝐟𝐭𝐞𝐫 𝐭𝐡𝐚𝐭, 𝐭𝐡𝐞𝐲 𝐜𝐚𝐧𝐧𝐨𝐭 𝐨𝐩𝐭 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐨𝐥𝐝 𝐭𝐚𝐱 𝐫𝐞𝐠𝐢𝐦𝐞. Say, if a taxpayer chooses the old tax regime to file ITR for AY 24-25 but later decides to switch back to the new tax regime in AY 25-26, he shall file his ITR as per the new tax regime only for all the subsequent assessment years.
