New Vs Old Tax Regime: The last date for filing ITR is 31st July. In such a situation, some people are confused about the old and new tax regime. In such a situation, if you also want to move from old to new regime, then let’s know the method.
ITR Filing: The last date for filing ITR is 31st July this time too. If you have not filed your return yet, then you have two days time. Yes, you can pay income tax under either the new tax regime or the old tax regime. You can select either of the two as per your benefit. If your income does not come from any business, then you can select either the old or the new tax regime every year.
You cannot change your regime every year
But this facility is not for such people whose money comes from business or any other profession. If you are also one of such taxpayers, then you cannot change your regime every year. Once you select a regime, you will have to pay tax accordingly. The date of filing ITR is also different for such people. Actually, these people have to get their income certified by a CA. For this reason, the Income Tax Department gives more time to the business class to file more returns.
Also Read: ITR Filing: What documents are required to file income tax return?
Which is better, old tax regime or new tax regime?
If you talk about which is better between old and new tax regime, then let us tell you that both the regimes have almost similar benefits. But these benefits depend on your income. For example, if you have invested in different schemes to save tax, then old tax regime is better for you. But in new regime, it is easy to calculate tax and you do not get any exemption on investment in it.
Many options for tax exemption in the old regime
There were many types of tax exemptions in the old tax regime. Under this, you can claim under House Rent Allowance (HRA) and Leave Travel Allowance (LTA). If you can claim exemption on these, then the old regime can be good for you. But you get the new tax regime assessment year 2024-2025 automatically. If you do not select the old regime yourself, then you will have to pay tax under the new regime.
This is how you can change the method of paying tax.
If you want to change the method of paying tax, then you will have to submit Form 10-IE while filing your Income Tax Return (ITR). But this has to be done before the stipulated time limit, otherwise you will not be able to change the method for the whole year. After submitting Form 10-IE, you will get a 15 digit identification number, which you will have to include while filing your Income Tax Return.
What is Form 10 IEA?
Form 10-IEA is for people who earn money from business or profession and file their income tax through ITR-3, ITR-4 or ITR-5 form. Those who want to pay tax under the old regime and not the new regime. Common people, Hindu Undivided Family (HUF), Association of Persons (AOP) (except cooperative societies), Group of Individuals (BOI) and legal persons who earn money from business or profession can use this form.
