What if you had earlier informed your employer to deduct TDS based on the old tax regime, and now feel that the new regime suits you better? Can you make that switch during ITR filing?
Is It Possible to Switch Tax Regimes While Filing ITR?
Yes. As per current income tax rules, salaried individuals are allowed to change their tax regime at the time of filing their returns. This applies even if they had opted for a different regime during the financial year for the purpose of TDS.
So, if your employer deducted taxes based on the old tax regime, you can still shift to the new regime when filing your ITR—and vice versa.
The tax department put you in the new regime if you do not disclose your prefence to your employer.
What Is Section 115BAC All About?
Section 115BAC of the Income Tax Act introduced the optional new tax regime. This regime offers lower tax rates but does away with most exemptions and deductions—like those under Section 80C, HRA, and LTA.
Taxpayers must carefully calculate which regime results in a lower tax liability, depending on their salary structure and eligible deductions.
Don’t Miss the Deadline
You can only switch to the old regime while filing your ITR if you submit it on or before the due date. If you miss this deadline and file a belated return, the income tax portal won’t allow you to opt for the old regime.
In such cases, your return will automatically be processed under the new tax regime—even if you prefer the old one.
Important Dates to Keep in Mind
For most salaried individuals, the last date to file ITR is July 31. Businesses and professionals requiring audits must file their returns by October 31, while entities under transfer pricing rules (Section 92E) have until November 30.
In case you miss these deadlines, you can still file a belated or revised return by December 31. Additionally, an updated return can be submitted up to March 31 of the fourth year following the end of the relevant assessment year.
Audit reports are due by September 30 for most businesses, and by October 31 for those with international transactions.