Income Tax: Want to opt out of the new tax regime? Here is a step-by-step guide
new tax regime. And if you want to switch to the old tax regime and make use of the provisions such as tax exemptions entitled under section 80C and 80D — key provisions missing in the new regime, then you need to first opt out of the default i.e., new regime. Alternatively, if you want to make use of the lower tax slabs given in the new tax regime as a trade-off for the foregone tax exemptions, then you don’t need to go for this switch.
Here we give a lowdown on switching from the old tax regime to the new tax regime. ALSO READ: Income Tax Return: How to prepare for hassle-free tax compliance? Here is a 10-point checklist One has to file form 10-IEA which is an application for exercise of option under section 115 BAC(6), i.e., for opting out of the new tax regime. For business cases, form 10-IEA has been notified which can be used by taxpayers to exercise their right to choose between the old regime.
By filing this form, the taxpayers can inform the income tax department of their choice regarding the tax regime. In non-business cases, options can be exercised with return of income on or before the due date specified under section 139(1). In case of business income, form 10-IEA should be filed on or before the due date specified under section 139(1) for furnishing the return of income.
The due date forindividual/HUF/AOP/BO is July 31 and for businesses subjected to audit, the due date for filing the return is October 31. Notably, in case you want to opt out of the new tax regime, and you fail to file the form within the due date of filing ITR, you will not be eligible to opt for the old tax regime in your ITR for the relevant assessment year. ALSO READ: Income Tax: As ITR forms enabled to file returns, check here which
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