Filing your Income Tax Return (ITR) can feel like navigating a maze, especially with changes to the tax regime every year. But fear not! Here’s a breakdown of the key points you need to consider before tackling your ITR for 2024 (Assessment Year 2024-25).
This year, the new tax regime takes center stage as the default option. But don’t worry, individuals without business income and even salaried employees have options for switching regimes! Let’s unravel the mysteries and ensure you file your ITR with confidence and potentially save some money in the process!
1. New Tax Regime as Default:
- The new tax regime is now the default option for all taxpayers.
2. Previous Choices Don’t Apply:
- Any previous selections made for choosing tax regimes in earlier years will not be carried forward for the 2024-25 assessment year.
3. Switching Tax Regimes (Individuals without Business/Profession):
- Individuals who don’t have income from business or profession can switch between the old and new tax regime every year.
- Salaried employees can also choose their regime:
- If your employer deducted tax under the old regime, you can choose the new regime while filing your ITR and vice versa.
4. Switching Regimes (Individuals with Business/Profession):
- Individuals with income from business or profession cannot switch between regimes every year.
- They can opt out of the new regime and choose the old regime only once in their lifetime, as long as they continue their business/profession.
5. Opting Out of New Regime (Business/Profession):
- To opt out of the new regime and choose the old regime (for business/profession), individuals must file Form 10IEA.
6. Choosing Old Regime (Mandatory ITR Filing):
- If you want to choose the old regime, you must file your ITR by July 31st.
- If you don’t file by this deadline, you will be automatically placed under the new regime.
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MAM VERY EXCITED IN YOUR KNOWLDGE
Very informative. I am 81 years old and a retired govt official. Have income from pension and FDR interest only. But an amount of RS.110 has been included by LIC in my AIS as commision which has nothing to do with me. Pl suggest what should I do. Have never dealt with LIC at all.
My anticipated income for 24-25 is rs7.4 lakhs which is not taxable..But an amount of rs 25000 was given which is an arrear due in the previous year.Then the total becomes rs 7.65 lakhs which is taxable.How can I escape from this
If IT filing is new regime by default that means it’ is slowly to remove tax benefit in old tax regime indirectly discouraged people from doing investment in savings for long term benefit
I have got some money as arrears. I want to distribute the same over the years so as to minimise the tax burden. Can you please suggest how it is possible.