We used the new regime u/s 115 BAC for AY 2021-22. Filled up form 10IE.
As we can opt out once, we filled up form 10 IE for opting out for AY 2022-23. So we opted for old regime for AY 2022-23 and AY 2023-24. We hoped to continue filing with old regime while claiming deductions, and also the fact that we are allowed to change the regime only once if we have professional/business income.
Now Govt updated the slabs in the recent budget and the new slabs(with less tax without deductions) look like a lucrative option. Can we opt for this new scheme for AY 2024-25 onwards?
Persons who do not have any income from business or profession ( Salaried people) can change their regime as per their convenience. Their is no restriction for opting old or new regime. They can change each year.
Persons having income from ” Business or Profession” shall be allowed once to change their regime once opted to new regime.
Further, in case of Taxpayer having a business income, option once exercised would be applicable for all subsequent financial year and such taxpayers would have to intimate to the employer, as applicable. The intimation once made cannot be changed for the subsequent financial year except under prescribed circumstances.
Yes, in our opinion all the returns will be processed as per the new tax regime from AY 2024-25 onwards.
Form 10IEA has to be filed on or before the due date (July 31st for non-audit cases) in case you want to opt for the old tax regime.
Also, in case you do not have any income from Business & Profession, you can simply select the regime you want to opt for in the Income Tax return and no need to file Form 10IEA.
