Rechange of Tax Regime from last year to current year

To switch from the old tax regime to the new tax regime for AY 2025-26, you'll need to file Form 10IEA is not required to be reversed, but you need to ensure you don't file Form 10IEA for the new assessment year if you wish to be under the new regime.

 *Steps to Switch to New Tax Regime:* -

 *No Specific Form*: There's no specific form to file for opting into the new tax regime. Instead, you'll indicate your choice of tax regime while filing your Income Tax Return (ITR) for AY 2025-26. -

 *File ITR-3*: Since you have business and profession income, you'll file ITR-3 for AY 2025-26. -

 *Choose New Tax Regime*: While filing ITR-3, you'll have the option to choose the new tax regime. Ensure you select the new tax regime option. *Important Points: -

Default Regime*: If you don't specify your choice of tax regime while filing your ITR, the new tax regime will be considered as the default regime. -

*Tax Implications*: Before switching to the new tax regime, consider the tax implications, including the impact on your tax liability and any potential benefits or drawbacks. 

But once filing with new regime, can one go back to old regime next year, with business and profession income?

NO                                                       

Thank you for the confirmation!

You are welcome.               

Dear sir 

Last year I had filed ITR 4 as my business income under threshhold and opted old regime tru 10ea This AY year 25-26 also my business income under threshold limit only but want to file under new regime. Can I file ITR4  or should opt for anohter ITR. I understand that UTR 3 for those who business income above threshhold and require tax audit.

Please help me out as my attempt to file ITR 4 coudlnot succeed.

Regards,

Sojan K J 

Yes, you can file ITR 4 under new regime, provided you have filed form 10IEA before filing ITR4.

Remember that you will not be able to opt for old regime again. (till you have business income).

Thank You very much sir

You are welcome.                    

Salaried individuals without business income can change their tax regime every year while filing the ITR. If you were on the old regime last year and want to switch to the new regime this year, simply select the new regime when filing ITR-1 or ITR-2 for AY 2026-27. No separate form or employer notice is required for this switch. If you want to stay on or opt into the old regime (to claim HRA, 80C, home loan interest, etc.), you must actively select it since the new regime is now the default. The filing deadlines and a quick comparison of which regime saves more tax for different salary levels are covered in this [ITR filing guide for AY 2026-27](https://taxgarden.in/blog/itr-filing-last-date-ay-2026-27).