ITR Filing for AY 2023-24: Compliance required for opting for the new tax regime

financialexpress.com:

After the introduction of the new tax regime in the Budget 2020, there has been a lot of confusion in the minds of people in respect to how the new regime can be opted and opted out. Also, a very common question is what are the compliance requirements of opting into the new regime. Before understanding the compliance requirements, first let’s try to understand about the tax regime itself.

The rationale behind the introduction of the new tax regime was to make tax filing simpler for individuals who make up a high number of taxpayers and contribute significantly to the tax collection. In the new tax regime, the rates are as follows:

Income up to Rs 3,00,000 – Nil rate of tax Form Rs 3,00,001 to Rs 6,00,000 – 5% From 6,00,001 to Rs Rs 9,00,000 – 10% From 9,00,001 to Rs Rs 12,00,000 – 15% From 12,00,001 to Rs Rs 15,00,000 – 20% Beyond Rs 15,00,000 – 30%

The individuals who have income from Salary, Dividend, Interest, Capital Gains or Rental Income from house property have the option to switch between the tax regimes every year and they do not really have to comply with other conditions apart from filing the tax return within the due date. The new tax regime is only available if the return has been filed within the due date, i.e., 31 July of the assessment year.

Also Read: ITR Filing for FY 2022-23: Five essential steps to remember while filing income tax returns

However, if anyone has income from business or profession, they can opt into the new tax regime only once in their lifetime and they can opt out of it only once in their lifetime. While opting into the tax regime along with the tax return they have to file an additional form, which is form 10IE. Also, at the year of exit they have to file the 10IE along with the