Switch into and out from New Tax regime

Tax planning 347 views 4 replies

K Suresh

Investment advicer

51 Points Joined March 2014

Dear All,

I would like to know whether an income tax assessee can switch to and fro between old and new tax regimes, every year? Also would like to know whether he/she can opt for one tax regime in the beginning of the financial year and switch over to the other regime at the time of e filing which usually would happen in the subsequent FY? And when should he/she inform the choice to either auditors or to the employers? Will be damn happy to get your esteemed opinions and guidance in these matters.

Thanks and Take Care

Yours

K. Suresh

Replies (4)

Ankit chaturvedi

CA in Practice

241 Points Joined August 2016

Dear,

1. for salaried employees, then can inform their employer about the structure they want to select, and even they can change at time of filing of return, every year they can choose so.

2. for business class once selected cannot be changed.

Vinay Garg

15 Points Joined September 2018

For salaried employee without business income , it can be opted "every year".
Further employees have to convey to employer by giving declaration/ intimation for TDS purpose. Further he can opt any the tax regime at time of filing the return considering adjustment of TDS. Refer circular dated 13 april,2020.

Thanks