ITR filing 2025: Is it possible to switch between new and old tax policies every year?
Taxpayers in India may vary the annual and new income tax policies. But there are restrictions for those who earn income with business. The new policy is now default under Budget 2023. This means that the taxpayer must clearly select the old tax system. You have to select one before the time limit of ITR filing.
Taxpayers can choose between old, new income tax policies based on their requirements. They have different special benefits. However, you should remember what you are choosing. Can be repeated annually. It is important to understand how many times you can switch to policies if you are an employee or business.
They have an opportunity once
‘Business or professional income taxpayers cannot change between tax policies every year. Only once will change. Once they changed, they cannot switch to the old approach in the future. However, people with non -business income may vary between new and old tax policies annually. Under Section 139 (1) of the Income Tax Act, there is an option to select the old tax system before the expiration date. ‘Tax2win CEO and co -founder Abhishek Soni said.
‘There are no clear rules in this regard. But in my opinion you can change your tax system anyway before the expiration date. Everything depends on how ITR utility is configured. You can also modify the returns after the expiration date. Tax system can change. However, the ITR should be filed within the expiration date. ‘Tax expert Balwant Jain said.
They can vary every year
Non -business income tax payers such as salaries may vary between new and old tax policies every year. However, the tax system can be selected before the time limit for filing the Income Tax Return (ITR).
‘An income person who is not a business can switch between new and old tax policies every year. The old tax system can be selected before the due date for filing returns for return according to Section 139 (1) of the IT Act in the same year. The Income Tax Department said on its website.
No person with a business or profession is eligible to change more than once. For example, after choosing a new tax system, you can only switch back to the old approach once in your lifetime.
According to Budget 2023, the new tax system has been declared as a default tax system. Taxpayers who want to choose the old tax system must complete the process to select this option. To do this, Form 10-I must be filed before the time limit for filing ITR. This allows them to use their option between new and old tax policies. ‘Abhishek Soni said.
ITR filing 2025
It is important to file income tax returns in maintaining your tax responsibilities. Taxpayers can file late returns before December 31, 2025 if you do not file your ITR for the financial year 2024-25 (assessment year 2025-26) within the deadline for filing.
