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Does the tax saved after switching the regime get's reflected in current FY ?

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Adarsh Gumashta

23 Points Posted on 23 June 2023

I work in 1 company in Bangalore , Between 1-10th April in there portal option was provided to choose between old regime and new regime . I selected new regime , and i noticed in there's a lot of tax deduction in new regime . Later on i took help of my CA and got to know that if we consider HRA also so i am getting benefitted in old regime .

Now i want to switch to old regime , i know that we can change while filing ITR , What i want to know is , if i change to old regime while filing ITR , would i get the upcoming month's salary(AUG2023 -MARCH 2024) considering old regime tax deductions ultimately increase in inhand salary ?

Replies (4)

Quick Summary

An employee in Bangalore switched to the new tax regime in April but later realised the old regime would be more beneficial, especially with HRA. They want to know if switching back to the old regime when filing their Income Tax Return (ITR) will affect their take-home salary from August 2023 to March 2024. While the employer's tax deduction basis won't change mid-year, the employee can claim a refund for any excess TDS deducted in the new regime when filing their ITR.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 23 June 2023

Employer's mandate will not change. What you change is for ITR purpose, that too for preceding FY, while your current salary deductions are based on option chose in current FY.

Adarsh Gumashta

23 Points Posted on 23 June 2023

so how to get back that amount which got cut in taxes when i am in new regime ? .

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 23 June 2023

When you file return, you can ask for the refund of excess TDS deducted.

Aashok Kumar Sharma

Finance/Compliance Consultant

75642 Points Posted on 08 November 2026

Regime choice at work vs at filing:
• Choosing the new regime with your employer in April affects only TDS. When filing your ITR (salaried, no business income), you can choose either regime. The final tax is per the regime chosen in the ITR.
• If you chose the new regime at work but file in the old regime (with HRA, 80C etc.), you'll get a refund of excess TDS (or vice versa).
• So there's no "tax saved" at the employer stage. The ITR decides.