If you think you have made a mistake while selecting between the new and old tax regimes, then here is the way to switch back to the scheme you desire.
Through the Current Financial year’s Budget, Union Minister Nirmala Sitharaman announced the new tax regime as voluntary compliance. Taxpayers, especially employees, are allowed to choose between the old and new regimes as per their preference.
As the protocol says at the beginning of every financial year, the employees are required to inform their employer about the tax regime they wish to follow.
Need Software for Easy ITR Filing
For instance, if you first wish to go with the old tax system but eventually find the new tax regime more beneficial for you then there is a way for you to switch to the new tax regime.
While Filing an ITR
The government has given the employees the choice between the old and the new tax regime. The decision normally has to be taken at the beginning of the financial year but in case if you have chosen the old tax regime but you find a new system much more beneficial for you then you can switch to the new system while filing the Income tax return
Anytime in the financial year before the ITR filing, you cannot switch to another regime.
Old Tax System V/S New Tax System
The new tax regime is the lower tax regime which means it has reduced rates of taxes but the system does not allow any tax reduction based on tax-saving investments like the old tax regime. On the other hand, the tax slabs under the old tax regime remain untouched but here you can avail deductions on tax-saving investments.
Tax Slabs Under the New Tax Policies
As per the new tax regime, no tax applies to income up to Rs 3 lakh per annum. Above that:
- A 5% tax is applicable on income from 3 lakh to 7 lakh per annum
- 10% tax is applicable on income from 7 lakh to 10 lakh per annum
- 15% tax is applicable on income from 10 lakh to 12 lakh per annum
- 20% tax is applicable on income from 12 lakh to 15 lakh per annum
- 30 % tax is applicable on income more than 15 lakhs per annum
Along with relevant cess and surcharges.
Read Also: A Summary of Tax Calculator with Pros Under New Tax Regime
What to do in Case of More Tax Outgo?
As per the laws, the employees have to choose between the old and the new tax regime and inform their employers about their choices, however, if one is not certain about the choice then he/she can certainly change his/her decision at the time of ITR filing.
In case the employee encounters that the tax deducted is more than the actual payable amount, then he/she can claim the refund (by filling online refund application) for that extra tax while filing the Income-tax refund.
Hi,
Can we move back to old tax regime in between financial year. as, I choose new regime declaration erroneously and post two months I am trying back to Old Regime as this is impacting on my take home salary.
Can I switch back to old regime soon after two months from choosing New Regime?
I have opted a new tax regime but my slab old tax regime was more suitable. Could you please help me how could I get back to my old tax regime.
Thank you and looking forward to hearing from you.
Regards,
Varalakshmi BN
Yes. you can opt old tax regime back
When I select old regime ? 20-21 year
I’m also facing same problem,
Thanks
I have declared the investments as per the old regime and mistakenly selected the new regime this month and lot of tax deducted.
How can we change it to the old regime?
Please contact to the department
Hi Priya, mistakenly opted new tax regime and submitted, but I have my 80c which will bring down my tax deduction.
now, how I can get back my tax deduction?
If you opted a new tax regime and submitted Investment Declaration Form, you can change later.
Hi Priya, I have the same case. Now when can I change it from new to old regime? And, until then it will be deducted as per new regime only so will I be able to claim it later?
Hi mam,
I have selected a new regime,
is there any chance to change,
and it is permanently fixed as a new regime in the next coming financial years?
Yes you can change
You said that we can able to change but how to file the old tax regime in ITR
Please contact to the department.
if form 16 is in new tax regim can I Select old tax regim avail deduction of under section 80C COULD I GET REFUND OF EXCESSES TAX
Hi,
While filing IT returns, I mistakenly opted for the new tax regime and submitted the returns. And after that I came to know that the old regime is better suited for me & I now wish to change that one. Is there any way to switch between the new and old regime now?
Please contact the department regarding this matter
Hi Priya,
Being an employee, I have to declare Investment declarations and Rent paid/payable details to the employer at the beginning of the financial year.
Suppose, I have opted for the New Tax regime and informed to my employer and not submitted the details of Investment declarations and Rent paid/payable details.
Incase at the time of filing income tax returns, if I feel Old Tax Regime is beneficial, I can choose Old Tax Regime and file the returns.
As I have not submitted Investment declarations and Rent paid/payable details to the employer, whether an employee has to collate all these details keep it with him?
Kindly clarify
With regards,
Subramanya R
No sir, Employer will not collate these details. Employer will deduct tax according to the Regime opted. In your case, you have opted for a new regime and the employer has deducted your tax according to the new regime. But at the time of filing of return you have opted for old regime then whatever will be the shortfall or excess of tax deducted you will have to adjust it at the time of filing of Return.
SAG Team, Even I have done the same mistake, I chose the New Regime and l paid a lot of tax. Can you help me with this, How much you are charging for this?