I have earned interest from partnership firm under income from business and profession. I had opted for new tax regime last year. Do I have the option to switch between new and old tax regime every year?
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Switching between new and old tax regime
Replies (5)
Quick Summary
Though not clarified anywhere, but I think you should be eligible to switch between both regimes.
Now onwards new tax regime will be default tax regime. But there is option to select old tax regime. person having salary income can switch from old to new or vice versa every year. However assessee having business income can switch only once.
Assessee having business or profession income, after opting for regular tax regime will have an option to move out only once.
Assessee having business or profession income, after opting for regular tax regime will have an option to move out only once.
So is it that I have only one option to move from new regime to old regime.
Not advisable however what is your income .
rather gti
rather gti
The switching rules depend on your income type:
For salaried individuals (ITR-1 or ITR-2):
- You can switch between regimes every year when filing your ITR
- No separate form needed - just select during ITR filing
- Your employer TDS deduction follows whatever you declare at the start of the year, but you can correct at filing time
For those with business or professional income (ITR-3 or ITR-4):
- Switching requires filing Form 10-IEA
- You can only switch BACK to the new regime once in your lifetime
- For AY 2026-27, Form 10-IEA must be filed before or at the time of ITR submission by July 31, 2026
Practical tip: if your deductions (80C + HRA + home loan) are less than Rs 3.5-4 lakh, new regime usually saves more tax. Run the numbers on the income tax portal calculator before deciding.
For a side-by-side calculation, see this [regime comparison guide](taxgarden.in/blog/old-vs-new-tax-regime-ay-2026-27-which-is-better).
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