Many salaried employees will soon receive their Form 16 from their employer. Once they receive it, they will start collecting other documents to file their income tax return (ITR). However, what if they change their mind now and want to opt for a different tax regime than what was communicated to the employer last year? For instance, suppose you informed your employer to opt for the old tax regime and submitted the required proof for the same for FY 2024-25. However, after checking the actual incomes, you now realise that you can pay lower tax in the new tax regime. Can you change the tax regime while filing ITR this year?
Income tax rules: Can you change the tax regime while filing ITR?
The income tax rules allow a taxpayer to choose any tax regime while filing an income tax return. This means that an individual who has opted for the old tax regime for TDS on salary for FY 2024-25 can change to the new tax regime while filing an ITR. On the other hand, an individual who has opted for the new tax regime for TDS on salary can choose the old tax regime while filing their ITR.
The new tax regime is the default tax regime. The income tax return form asks the taxpayers, “Whether opting out new tax regime of Section 115BAC?” If an individual clicks yes, then ITR is filed under the old tax regime. On the other hand, if an individual clicks no, then ITR is filed under the new tax regime.
Section 115BAC of the Income Tax Act governs the income tax slabs and rules under the new tax regime.
Taxpayer can choose old tax regime in ITR only by this date
It is important to note that the income tax rules allow you to choose the old tax regime if the income tax return is filed on or before the due date.
If the ITR is filed after the due date, the income tax e-filing portal will not allow a taxpayer to file the ITR under the old tax regime. The belated ITR (tax return filed after the due date) will be filed under the new tax regime.
Last date to file an income tax return
The income tax laws mention different due dates for filing income tax returns for different categories of taxpayers.July 31 is the due date for filing an income tax return for taxpayers whose accounts are not required to be audited.
| Status of taxpayer | Due date of filing ITR |
| Individuals/assessee whose accounts are not required to be audited (individuals, HUFs, Association of Persons, Body of Individuals, etc) | Last date to file ITR without late fees and old tax regime is available – July 31. (The assessment year immediately follows the financial year for which the tax return is to be filed) |
| Taxpayers whose accounts are required to be audited: ●A company ●An individual or other entities whose accounts are required to be audited (like proprietorship, firm, etc) ●A working partner of a firm | October 31 of the relevant assessment year. |
| Taxpayer who is required to furnish report under Section 92E | November 30 of the relevant assessment year. |
| Belated ITR for every taxpayer | December 31 of the relevant assessment year. |
| Revised ITR for every taxpayer | December 31 of the relevant assessment year. |
| Updated ITR | March 31 from the end of four relevant assessment years. |
Similarly, for taxpayers whose accounts are required to be audited and there are no international transactions, the due date for filing the ITR is October 31. These taxpayers are required to submit the audit report by September 30 before filing the ITR. Submitting the ITR report is mandatory for ITR filing.
Similarly, taxpayers having international transactions are required to file ITR by November 30, provided the audit report is submitted by October 31.
