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 wrongly opted for a new tax regime which led me to lose a big chunk in my May salary, can I get the deducted amount refunded if I again choose the old tax regime?
Yes, you can opt for the old tax regime while filing your Income Tax Return, excess TDS Deducted will get refunded to you after filing of return of income.
am also wrongly choose New regime instead of Old regime, now monthly 6k Deducted in salary. please help any solution is there to change Old regime.
i have also done the same mistake in 2020 and i having loss due to this.My employer said it would be refunded when filling ITR in July.
Hi Kuldeep,
I have chosen new regime and I have received less salary than regular. I heard that switching is not possible now. But, I want to know that you get refund on your tax return filing or not.
Sir I have filed my return in new regime in Ay 2021 -22, now I want to file my return in old regime for Ay 2022-23, Iam getting income from pension and FD intt. Where I can switch the new to old regime practically, pl help
I have mistakenly selected a new regime scheme, because of that my tax is deducting every month, is that possible to change in between?.
please let me know when I can change to the old regime.
and please advise is that possible to claim more tax deduction this year if yes please advise the process to claim while filing ITR.
Waiting for your reply.
“Please contact to the department”
Many people are in this situation and it would be very helpful if you can elaborate on how to do this.
How can someone switch from a new to an old regime at the time of filing ITR? How will proofs for HRA, 80C, LTA etc… be considered while filing ITR?
if we wanted to update income and deductions details at the time of ITR filing which were not done earlier and documents for it was not submitted to an employer then form 16 will not match with my tax filing. Is it mandatory to upload form 16 and what if form 16 and tax filing do not match? Also, if I choose to change my regime, form 16 again will not match. Please clarify what will happen in that case? My employer will not update my form 16. Is form 16 required for any purpose?