ITR filing 2025: How often can taxpayers switch between new, old tax regime? READ

In India, taxpayers can choose between the old and new income duty administrations, each immolation distinct benefits. still, this choice is not endless and can be redefined annually. Whether you're a salaried hand or running a business, understanding how frequently you can switch between duty administrations is pivotal for maximising your duty savings. In the Union Budget 2023, the new duty governance was made the dereliction governance.

Salaried employees: Your choice

Salaried workers can elect their duty governance at the launch of each fiscal year. However, employers will abate duty under the new governance by dereliction, If no preference is given.Still, you can still switch to the old governance when filing your Income Tax Return (ITR) before the due date under Section 139( 1) of the Income Tax Act and claim a refund for any redundant duty paid.

Buisness proffesional limited flexebilty

On the other hand, if you earn income from a business or profession, you have confined inflexibility in switching duty regimes.However, also you can switch back only formerly. If you conclude out of the new duty regime. After switching back to the new duty governance, you can not return to the old governance again in the future.

Final thoughts

Hence, business professionals need to suppose precisely before making their choice, as it could have long- term counteraccusations .
Also, it's stylish to calculate your duty liability under both administrations before deciding. However, one should consult a duty expert to insure you make the most duty-effective choice for your income and fiscal pretensions, If demanded.