Filing your Income Tax Return (ITR) soon? Many taxpayers have begun preparing their income tax returns for the financial year 2024-25, as Form 16 starts landing in the email inboxes of salaried employees. One common question creating a buzz among taxpayers this year is whether individuals can switch between the old and new tax regimes at the time of filing.
Notably, the new income tax regime was introduced by Finance Minister Nirmala Sitharaman in Budget 2025 as an optional tax regime, effective from FY 2024-25.
The Income Tax Act allows individuals to switch between the old and new tax regimes while filing their ITR. This means that even if a salaried employee chose the old regime for TDS during the year, they can still opt for the new regime while filing if it offers better tax savings. Similarly, those who selected the new regime for TDS can switch to the old one at the time of filing.
While filing your income tax return, you’ll be asked: “Are you opting out of the new tax regime under Section 115BAC?” If you answer “Yes,” it means you want to go with the old tax regime. If you choose “No,” your return will be filed under the new regime, which is the default option. Section 115BAC defines the tax slabs and rules for the new tax regime.
You can switch between the old and new tax regimes only if you file your ITR on or before the due date. If you miss the deadline and file a belated return, your ITR will be processed under the new tax regime by default. In such cases, the income tax portal won’t allow you to switch to the old regime.
The last date to file Income Tax Returns for individuals and salaried employees who don’t need a tax audit is July 31, 2025. For those who do need a tax audit (but not involving international transactions), the deadline is October 31, 2025—if the audit report is submitted by September 30.
Meanwhile, taxpayers involved in international transactions must file their returns by November 30, 2025, with the audit report due by October 31.
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