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ITR Filing- Old or New Regime

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Anish Verma

42 Points Posted on 12 February 2024

Can an employee file ITR under the old regime, if TDS on salary for the relevant FY(23-24) has been deducted by the employer under a new regime of taxation or vice versa?

Replies (7)

Quick Summary

Yes, an employee can file their Income Tax Return (ITR) under the old tax regime even if their employer has deducted Tax Deducted at Source (TDS) under the new tax regime for FY 2023-2024, or vice versa. The employee's choice of tax regime for filing their ITR is independent of the regime used by the employer for TDS deduction. Employees should carefully evaluate both regimes based on their income, potential deductions, and overall tax liability to select the most beneficial option for their personal financial situation.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 February 2024

But, before get declaration form employee.
it's better practice...

CA Rashmi Gandhi

Chartered Accountant

44442 Points Posted on 12 February 2024

Yes he can do so. There is no such compulsion that assessee must choose the same option as declared by the employer.

But as Mr. Raja PM said get the declaration from employer to avoid any notice or litigation.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 February 2024

Originally posted by : CA Rashmi Gandhi
	Yes he can do so. There is no such compulsion that assessee must choose the same option as declared by the employer.But as Mr. Raja PM said get the declaration from employer to avoid any notice or litigation.

Not Employer,

I said Employeee....

CA Rashmi Gandhi

Chartered Accountant

44442 Points Posted on 12 February 2024

Employer file his TDS return only after getting declaration from employee but sometimes after declaration employee made new investment.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 12 February 2024

Employer file his TDS return only after getting declaration from employee....!!!

You mean it's from April...??

CA Rashmi Gandhi

Chartered Accountant

44442 Points Posted on 12 February 2024

No, generally declaration taken between dec to Feb by companies.

Many private companies ask for declaration in april too and thereafter final in jan-feb

Suresh Kumawat

Chartered Accountant

328 Points Posted on 16 February 2024

Yes, employees can file their ITRs under the old regime even if the employer has deducted TDS for the relevant FY 2023-2024 under NTR.

While filing their ITR, employees are not restricted by the tax regime under which TDS is deducted by their employers. Based on their financial circumstances and tax planning preferences, employees can select between the old and new tax regimes, with or without deductions and exemptions.

Employees can choose the tax regime that is most beneficial for them regardless of how TDS is deducted by their employers. A decision should be made by employees based on their income sources, eligible tax deductions and exemptions, and tax liability after evaluating both regimes.

To determine the most suitable tax regime for their situation and ensure compliance with all tax laws and regulations, employees should carefully evaluate their options and consult with a tax advisor if necessary.