Income Tax Return e-filing: Can you keep switching between new and old tax regime every year? What taxpayers should know
The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime. (AI image)
ITR filing FY 2024-25 (AY 2025-26): When filing your income tax return every year, the choice between the old and the new income tax regime is an important one. The new income tax regime offers lower tax rates and higher standard deduction compared to the old tax regime.
On the flip side, the old tax regime allows for popular deductions and exemptions like Section 80C, 80D, House Rent Allowance (HRA), Leave Travel Allowance (LTA) and more.
As your financial situation evolves over years, you may find it beneficial to be in the old regime versus the new or vice-versa. What if you opted for the new tax regime last year, but realise that for this year's ITR filing the old tax regime results in lower tax outgo? A common question that taxpayers have is: can they choose between the new and old income tax regime every year, or is it a one time choice?
Also Read |
ITR filing FY 2024-25: Do you need to file your income tax return if TDS has been deducted? Explained
Old vs New Tax Regime: Can you switch every year?
According to Sudhakar Sethuraman, Partner at Deloitte India, the Income-tax Act, 1961 allows individual taxpayers (who do not have business income) to choose between the regular (old) and simplified (new) tax regimes each financial year.
'The choice of income tax regime is at the discretion of the individual and they can choose every year (provided they don't have business income) depending on what is beneficial for them,' he tells TOI.
Sudhakar Sethuraman goes on to explain, 'Further, even if an individual had declared one tax regime to the employer for TDS purposes, he/she can change the choice of tax regime at the time of filing tax return (if he/she does not have business income).'
It's important to note that the new income tax regime is now the default tax regime. In case you wish to file ITR under the old income tax regime, then you will have to opt for it. This can either be done at the start of the financial year by informing your employer, or at the time of filing the income tax return.
Yet another fact that is of consequence is: you can opt for the old income tax regime at the time of ITR filing only if you file your tax return within the due date. Once the deadline to file ITR is crossed, you will automatically be switched to the new income tax regime.
Also Read |
ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn't miss
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
2 hours ago
- News18
First Time Moving Out? Here's What Every Young Indian Tenant Should Know
Akhil Gupta, Co-founder of NoBroker, advises young Indian tenants to choose practical locations, consider shared living, find side hustles, rent assets, etc. Authored by Akhil Gupta, Co-founder & Chief Product and Technology Officer, NoBroker: Leaving the comfort of parents' home and stepping into adulthood is as challenging as it is exciting. For India's youth, especially those aged 18 to 24, moving out is a chance to leave to get a better education, move out for a new job or just opt to be independent. The 2021 Census of India report says that 3.3 million people migrate within the country for educational purposes. A large chunk of this migration is seen in tier 1 cities, which are a magnet for both students and job seekers. The biggest and most common challenge when migrating is finding the perfect rental place. From budget constraints to unfamiliar neighbourhoods, this phase requires smart decision-making. As someone who has closely witnessed the evolution of India's rental landscape through the lens of a once-home-seeker, here's a guide for young tenants preparing to navigate this new chapter. 1. Choose the Right Location It's natural to be drawn toward popular, upscale neighbourhoods. However, affordability and practicality must be considered over aspiration. While areas like Koramangala in Bangalore, Bandra in Mumbai or Koregaon Park in Pune may seem attractive for their amenities and nightlife, they can strain the budget. Instead, evaluate real needs: proximity to work or college, access to public transport, safety, and essential amenities. Many emerging micro-markets in Indian metro cities offer better value, cleaner environments, and better connectivity at a fraction of the rent. Real estate platforms like NoBroker provide in-depth locality insights, making it easier to assess livability, commute scores, and rental trends before deciding. 2. Consider Shared Living One of the most practical ways to reduce costs is to share your rental spaces. Beyond splitting rent, it helps distribute utility bills, housekeeping costs, and groceries. More importantly, it fosters a support system, especially valuable when you're away from family. This has become much simpler and more accessible with the help of social media groups, rental platforms, and social networking. You can always opt for platforms that offer services at zero brokerage to help save more money. When sharing living spaces, be sure to know the people you are renting with to avoid future conflicts and ensure a comfortable living environment. Also, confirm that each tenant pays rent directly to the owner, as this is important for claiming House Rent Allowance (HRA) under your own name for tax benefits. Try Finding Side Hustles Advertisement Urban living comes with unpredictable expenses, from hefty security deposits, maintenance costs, daily expenses, to emergency repairs. Building a financial cushion through a side hustle can offer security and growth. Remote internships, content creation, part-time teaching, or even niche freelance gigs (like UI design, resume writing, etc.) can help cover your monthly costs while adding credibility to your resume. With ample freelancing platforms, LinkedIn recruitment posts and writing tools, getting a freelancing job from anywhere has become easier now than ever. 4. Buy Less, Rent More One of the biggest mistakes young tenants make is investing in furniture, electronics, or vehicles too early. Unless certain of staying in one place for a few years, renting assets is the smarter, more agile choice. The rise of subscription-based providers for home equipment, essentials, and even vehicles means you can lead a comfortable life without paying extensive prices and heavy EMIs. It also reduces logistical hassles during relocation, something frequent movers in cities like Bangalore, Pune, or Gurgaon can relate to. However, if you are not planning to go abroad for work or for settling and intend to build your career in India, buying assets makes more sense as a long-term investment. advetisement 5. Keep Your Documents Handy From lease agreements to Aadhaar and college IDs, documentation is essential in a new place. Always keep scanned copies of essential documents stored securely online, put your docs on Google Drive. With rental agreements increasingly moving to digital formats, most proptech companies now offer e-signatures and automated verification processes. Being organised can save you time and trouble, especially during landlord negotiations or police verifications. 6. Rent In Gated Communities advetisement While standalone buildings might offer cheaper rent, they often lack essential services and security. Gated societies, on the other hand, come equipped with 24/7 security, maintenance staff, gym, swimming pool, badminton, tennis and football courts, power backup, and better hygiene standards. For first-time tenants, staying on rent and paying additional for lifestyle can be exorbitant initially. With increased verified rental listings in gated communities across top cities, young tenants can access a secure, well-managed lifestyle without paying exorbitant rates. As the Indian rental market matures, young tenants are also getting smarter. They have more tools, platforms, and data than ever to make a calculated move (no pun intended). From hyperlocal rental insights to digital lease management, platforms like NoBroker have made home renting faster, safer, and smarter. When signing a lease, it is essential to carefully review all the clauses to avoid any surprises later. Key points to check include the breakdown between rent and security deposit, so you clearly understand how much you need to pay upfront versus monthly. Moreover, if painting charges are being deducted, ensure that the house is freshly painted. Sometimes, painting charges can cost up to one month's rent. Make sure to check a few online painting service apps that can offer lower charges. Pay close attention to rent hike clauses, which are typically capped at around 5% annually, and get this clarified in advance. Lastly, if your monthly rent exceeds ₹50,000, a 10% Tax Deducted at Source (TDS) applies, so be mindful of the tax implications. Being thorough with your rental agreement can help you avoid unexpected expenses and legal complications down the line. top videos View All It is authored by Akhil Gupta, Co-founder & Chief Product and Technology Officer, NoBroker. The views expressed in this article are those of the author and do not represent the stand of this publication. About the Author Varun Yadav Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! tags : tenant Location : New Delhi, India, India First Published: June 29, 2025, 13:28 IST News business First Time Moving Out? Here's What Every Young Indian Tenant Should Know
Time of India
2 hours ago
- Time of India
Vehicle speed governors code issue now resolved
A senior official from the transport commissioner's office on Saturday said all Regional Transport Offices (RTOs) in Mumbai have the new UIN ( unique identification number ) data for speed governors for commercial vehicles . The same is being updated on the Vahan portal to ensure that annual passing (fitness tests) are carried out smoothly. He was responding to allegations made by city cabbies that due to "high costs" and "harassment" involved in upgrading the speed governor UIN code from 5 digits to 16 digits, there were delays in fitness tests of taxis. TOI reported about commercial vehicle owners, including taxis, approaching the transport department with complaints in the past. The ministry of road transport and highways has instructed manufacturers to modify all codes to 16 digits without charging fees. "Any demand for money or harassment, transporters or bus operators can approach and complain to the transport commissioner," the official from the state transport commissioner's office added.
Time of India
2 hours ago
- Time of India
Cancel permits if autos charge more: Minister
Almost two weeks after public anguish over the exorbitant rise in auto fares following the ban on bike-taxi operations in the state, transport minister Ramalinga Reddy Saturday instructed the transport commissioner to take action against ride-hailing mobile apps and regular autos if they are found charging illegal fares. Instructions have been given to transport department officials to cancel auto permits and book cases for illegal fare the direction came from the minister hours after #stepdowntransportminister was trending on social media platform X over the ban on bike taxis. Ramalinga Reddy told TOI he himself has received complaints from the public over auto drivers and aggregators charging exorbitant fares. The letter addressed to the transport commissioner states that on June 18, 2025, the ride-hailing mobile app Rapido was charging ₹100.9 per km. 'This kind of daylight robbery is unpardonable and strict action should be taken,' the letter states. Reddy cited ride-hailing apps as the reason for exorbitant fares being charged. 'A majority of auto drivers have attached their vehicles with ride-hailing apps. These apps, instead of following fare rules of the govt, are charging higher auto fares and other fees,' he said, adding: 'Enforcement staff will identify irregularities and take action. No auto drivers should collect more fare from passenger.' Acting on HC order: Reddy On the trending hashtag, the minister said, 'We've acted against bike-taxi operations as per the high court order. On social media, people do make comments about the decision taken by authorities, I don't have much to say about that. Earlier, bike-taxi operations were illegally operated. It is to say that the state govt does not support illegal operations.' Following the letter from the minister, transport commissioner Yogeesh AM told TOI that enforcement officials have been asked to act on the illegal collection of fares. 'When customers street hail an auto, the driver should charge the fare as fixed by the regional transport authority. Ride-hailing apps can charge a 10% service tax in addition to the fares fixed by RTA. Other fees and charges on customers are illegal.' As per the last revision in 2022, RTA has fixed Rs 30 for the first 2km and Rs 15 per km thereafter.
