Opting the tax regime

Yes, you are correct.....      

yes In fy 23-24 by default new regime

Manya

Section 115BAC of the Income Tax Act, 1961 was introduced by Finance Act, 2020 for the first time and the provisions have been significantly amended vide Finance Act, 2023 which are applicable w.e.f. Assessment Year 2024-25.

The New provisions of Section 115BAC of the Act (as applicable from AY 2024-25) provide that the New Tax Regime will be the default tax regime as announced by the Honourable Finance Minister in her Budget Speech while presenting Union Budget, 2023.

The relevant Extract of Budget Speech 2023 is as under:

“We are also making the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime” .......................   "now, with the introduction of Section 115BAC, the taxation has been simplified and tax rates are significantly lower as per Section 115BAC(1A), i.e., although the taxpayers shall not be eligible to claim majority of the deductions / exemptions from the total income, but the rates of tax will be lower."
 

W.e.f. AY 2024-25, the New Regime of taxation provided under section 115BAC of the Act is THE DEFAULT TAX REGIME which is applicable to following persons:

a) Individual,

b) HUF,

c) AOP (other than a cooperative society),

d) Body of Individuals (whether incorporated or not),

e) An artificial juridical person as defined u/s. 2(31)(vii).

Partnership firms (including LLP), Companies, Cooperative Societies are not covered under Section 115BAC.

Upto AY 2023-24: Only Individual and HUF could opt for New Tax Regime u/s. 115BAC.

 

Upto AY 2023-24:

a) Optional for assessee to opt for taxation u/s. 115BAC.

b) Option to be exercised by filing Form 10-IE (in case of person having income from business or profession) within due date u/s. 139(1) of the Act.

c) Option to be selected while filing return of income u/s. 139(1) of the Act (in case of person not having income from business or profession).

d) If Option not exercised – then return of income had to be filed only under the Old Scheme.

e) Applicable only to Individual or HUF.
 

W.e.f. AY 2024-25:

a) New Regime (Section 115BAC) is Default Tax Regime and Old Regime is optional.

b) If a taxpayer (having income from business or profession) has to opt for Old Regime, then Form 10-IEA has to filed within the due date specified u/s. 139(1) of the Act.

c) If a taxpayer (not having income from business or profession) has to opt for Old Regime, then Option has to be selected while filing return of income u/s. 139(1) of the Act.

d) To opt out of the New Regime, the above procedure (of filing Form 10-IEA for person having income from business / profession or selection in ITR for person not having income from business / profession) is irrespective of whether such taxpayer had filed ITR for AY 2023-24 under the Old Regime or the New Regime.
 

Thanks ...............                

Originally posted by : Dhirajlal Rambhia
	Upto AY 2023-24: a) Optional for assessee to opt for taxation u/s. 115BAC. b) Option to be exercised by filing Form 10-IE (in case of person having income from business or profession) within due date u/s. 139(1) of the Act. c) Option to be selected while filing return of income u/s. 139(1) of the Act (in case of person not having income from business or profession). d) If Option not exercised – then return of income had to be filed only under the Old Scheme. e) Applicable only to Individual or HUF.   W.e.f. AY 2024-25: a) New Regime (Section 115BAC) is Default Tax Regime and Old Regime is optional. b) If a taxpayer (having income from business or profession) has to opt for Old Regime, then Form 10-IEA has to filed within the due date specified u/s. 139(1) of the Act. c) If a taxpayer (not having income from business or profession) has to opt for Old Regime, then Option has to be selected while filing return of income u/s. 139(1) of the Act. d) To opt out of the New Regime, the above procedure (of filing Form 10-IEA for person having income from business / profession or selection in ITR for person not having income from business / profession) is irrespective of whether such taxpayer had filed ITR for AY 2023-24 under the Old Regime or the New Regime.

Sir,

One question based on this...

One of the assessee file his income tax (Salary & Freelancing Income) for AY 23-24 under old regime.

Now, His filing option is default under new regime as per ITD.

What can he do if continues under old regime...??? 

or

What can he do if filing under new regime...???

Please give suitable explanation....

For ITR 3/4, and opting 'Old regime' for AY 2024-25 (& continuing it afterwards), File Form 10IEA before due date of filing return (i,e, 31st July for non-audit cases); even though he may have been filing ITR under Old Regime previously.

If the form is not filed before due date or otherwise, ITR will be processed under New Regime only.

Sir I'm asking for this one 

One of the assessee file his income tax (Salary & Freelancing Income) for AY 23-24 under old regime.

Now, AY 24-25 His filing option is default under new regime as per ITD.

What can he do if continues under old regime...??? 

or

What can he do if filing under new regime...???

Please give suitable explanation....

Sir I'm asking for this one 

One of the assessee file his income tax (Salary & Freelancing Income) for AY 23-24 under old regime.

Now, AY 24-25 His filing option is default under new regime as per ITD.

What can he do if continues under old regime...??? 

or

What can he do if filing under new regime...???

Please give suitable explanation....

I'm asking if he continue with old regime then 

Is he want to file form 10IEA...??

Is he want to file form 10IEA new regime (old to new)...???