Have you ever wondered if it’s possible to change the tax regime while filing an ITR? Understanding the complexities of tax regulations can be overwhelming, with changes introduced in Budget 2023. Let’s explore how to change the tax regime while filing ITR so you know how to go about it.
Change Tax Regime While Filing ITR
So, can we change the tax regime while filing ITR? Yes, you have the option to transition between the Old Tax Regime and the New Tax Regime as per Budget 2023 when filing your ITR.
- You can switch your tax regime throughout the year when filing your ITR; this can be done even if you have chosen the new regime.
- You can choose your preferred regime (i.e., old or new) within the ITR form.
- You do not need to fill out any additional forms or follow different procedures.
Before you switch, remember that the new tax regime will now become your default tax regime for FY 2023-24.
- There is limited flexibility to change/switch tax regimes.
- When you opt for a new tax regime, you can switch back to the old one only once in your life.
- You must fill and submit Form 10-IE along with your ITR. Failing to submit Form 10-IE within the original due date for filing ITR makes you ineligible to switch back to the old tax regime for that financial year.