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.
I accidentally choose the new tax regime, can we switch back to the old tax regime in the month of October, Also when I can fill ITR to get the return of this financial year amount
FOR AY 21-22 DUE DATE OF FILING ITR IS 31st JULY 2021
can you get solution for any switching from new tax regime to old? please help me to get
If you have opted for New Regime and filed a Form of New Regime then for filing the Return of Next Year you have to again file a form to opt out of the New Regime
I have selected the new tax regime mistakenly. And now I got to know that under the new tax regime we cannot file HRA and Investments under 80c. At the time of filing ITR, we can move to the old tax regime, right? Under that regime, we can file all the investments and HRA?
Is it true?
Kindly clarify !!
YOU CAN CHANGE AND FOR MORE CLARIFICATION PLEASE CONTACT TO DEPARTMENT
Today a few minutes ago on the official website of my employer I have mistakenly chosen a new tax regime instead of the old one. Can I change it now?
You can file your income tax return as per the old regime and excess TDS will be refunded by the department
Hi,
I have by mistake selected a new tax regime and I will lose 3.88 Lakhs in extra tax with this option. How can I change it? I selected it by mistake. Please help.
No, you can’t change your regime but you can file your return as per the old regime. If any extra TDS is deducted will get refunded to you.
Which department we will reach for this case
I will take New regime current financial year but next can i file in old regime.
Hi,
I have chosen a new tax regime accidentally. How, when, and where can I switch back to the old regime again. Also, I hope, still, I can file my ITR for the financial year 20-21 with the old regime itself. Please guide with the steps to revert back
Yes you can opt old regime before filing ITR
Hello,
I have by mistake selected a new regime in the company’s declaration portal instead of the old regime, due to which I am paying 27k tax which would be 0 in the case of the old regime.
Can you please let me know if I can change this during IT returns and will I get a complete refund of the money which has got deducted?
Awaiting for any response.
Thanks!
Yes, you can file your Income Tax return with the old regime, any excess TDS deducted by the employer will get refunded to you.
Hi,
Thanks for the response. Excess tax which is the 27k which is cut under new regime will be refunded?
Appreciate your response.
Thanks!
I am not able to see the option to select the new tax regime in ITR 1. By default, it is taking the old regime. I am filing an IT return for my father who receives a pension and there is no option provided the state govt to select the option at the start of FY. So, I want to choose this option at the time of e-filing
The new regime is applicable from AY 21-22