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Time of India
30-06-2025
- Business
- Time of India
ITR filing FY 2024-25: How can taxpayers switch between old and new income tax regimes? Explained
The new personal tax regime has been made the default regime from the financial year 2023-24. (AI image) ITR filing FY 2024-25: When e-filing your Income Tax Regime (ITR) for AY 2025-26, the choice of the income tax regime is an important one. The new income tax regime is the default tax regime, so if you want to file your tax return under the old regime, you will have to expressly opt for it. The new personal tax regime has been made the default regime from the financial year 2023-24. So how can you make the switch from the new income tax regime to the old tax regime? We explain: ITR filing: How To Switch Between New & Old Tax Regime A salaried taxpayer can switch from one regime to another every year , so long as they file the original return of income within the due date u/s 139(1). According to Ishita Sengupta, Partner and India Leader, Vialto Partners, a taxpayer only has to select the appropriate option in the ITR Form 1 or ITR 2 by ticking 'Yes' or 'No' in response to the question: 'Do you wish to exercise the option u/s 115BAC(6) of opting out of the new tax regime?' By default, this section is pre-filled with 'No'. Also Read | Income Tax Return: What is Form 16? Top things taxpayers should check in this document before filing ITR 'Notably, if a return is filed after the due date (i.e., a belated return), the default tax regime—New Income Tax Regime—will automatically apply. However, if a revised return is filed, the taxpayer can still exercise the option to choose the regime, as long as the original return was filed within the due date,' Ishita Sengupta tells TOI. A taxpayer with business or professional income is NOT allowed to choose between the old and new tax regimes each financial year . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Adidas Three Shorts With 60% Discount, Limited Stock Available Original Adidas Shop Now Undo If the taxpayer opts out of the new tax regime, they are permitted to switch back to it only once. Once the taxpayer reverts to the new income tax regime, they cannot opt for the old regime again in the future. To opt out of the new regime, a declaration must be submitted in Form 10-IEA before the due date for filing the original return. Ishita Sengupta explains that the ITR 4 (SUGAM) released for the FY 2024-25 (applicable for those who have business/ professional income under presumptive taxation) now seeks more comprehensive details from individual taxpayers opting out of the new income tax regime. The taxpayers are now required to disclose: Whether they have filed Form 10-IEA to opt out of new income tax regime in last year (FY 2023–24), along with the date of filing and the acknowledgement number Whether they intend to continue opting out for it the current year (FY 2024–25). If not, they must again provide Form 10-IEA details for the current year Even if Form 10-IEA was not filed or was filed late for last year (FY 2023–24), taxpayers must elect their current choice of regime and submit Form 10-IEA details accordingly The taxpayers who filed ITR-1 or ITR-2 last year must also confirm whether they wish to opt out this year and provide Form 10-IEA details, if applicable Hence, before making a final selection between the two income tax regimes, taxpayers should carry out a comparative analysis to determine which is more beneficial for them. Also Read | Income Tax Return filing AY 2025-26: Which ITR form should freelancers and gig workers use? Explained 'Individuals having significant tax savings payments/investments (approximately more than Rs 8 lakh) may still find the old income tax regime beneficial, but if they have business income, they should carefully evaluate future year scenarios before making the final switch,' Ishita Sengupta adds. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
23-06-2025
- Business
- Time of India
ITR filing: What is the basic exemption limit for FY 2024-25 & under what conditions do you still need to file tax return?
ITR filing: The deadline to file income tax returns has been extended to September 15, 2025 this year, as against July 31 every year. (AI image) ITR filing FY 2024-25: Who needs to file income tax return? At what income level is filing of ITR necessitated? That's an important question in the minds of taxpayers, especially as the exemption limit for income tax varies depending on the tax regime you opt for. The deadline to file income tax returns has been extended to September 15, 2025 this year, as against July 31 every year. ITR FY 2024-25: When do you need to file a tax return? Chander Talreja, Partner, Vialto Partners says that fundamentally, the requirement to file the income tax return arises if you have a taxable income i.e. income exceeding the basic exemption limit, which for financial year 2024-25 is Rs 3 lakh/Rs 2.5 lakh for new income tax regime and old income regime respectively. Under the old tax regime the basic exemption limit for senior citizens is Rs 3 lakh and for super senior citizens (aged 80 and above) is Rs 5 lakh. This basic exemption limit has been increased to Rs 4 lakh under the new income tax regime in the current financial year 2025-26 - for which you will file your ITR next year. However apart from taxable income, the government has been expanding the norms for tax return filing wherein certain deposits made as well as expenses incurred during a financial year trigger mandatory tax return filing such as: Depositing ₹1 crore or more in one or more current accounts, or Depositing ₹50 lakh or more in one or more savings bank accounts Expenses incurred exceeding ₹2 lakh on foreign travel for yourself or any other person, or Electricity bills paid exceeding ₹1 lakh in aggregate 'In fact, where an individual does not have any taxable income and neither of the above conditions are met, still an ITR is a must to be filed for individuals qualifying as resident and ordinary resident if they hold a foreign asset such as overseas bank accounts, immovable property, shares, securities, or other financial interests,' he tells TOI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Moreover, Chander Talreja explains that filing of ITR has several advantages: 1) Carry forward of losses will be allowed only if an ITR is filed within the due date, except house property loss. 2) An ITR filing is the only way to claim a refund of the excess taxes deducted at source on your income 3) An ITR serves as proof of income for various purposes such as undertaking loans, visa applications etc and hence advisable to be filed to maintain the continuity of filing (even if not mandatory required for any financial year). Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
