- IN THE NEWS X
- It’s time to clear your advance tax liability
- Seniors need to submit Forms 12BBA, 15G, 15H to save on TDS: Experts
- How investing in 54EC bonds can help you save tax on long-term gains
- New income tax forms are out for new assessment year 2022-23. Find out which one you should use
- New ITR forms need income disclosure from foreign retirement a/cs
- Why is March 31 an important date for taxpayers? Find out
- Not filed ITR yet? Face penalty or even jail term, say analysts
- March 15 Is The Last Date To Pay Advance Tax: Time To Clear Your Liability
- It's time to deduct TDS if rent exceeds Rs 50,000, say analysts
- Clarification on capital gains tax on early redemption of Sovereign Gold Bonds is required – Here’s why
- Second amendment to LLP Rules will ease procedural burden: Experts
- Three Things To Keep In Mind Before Investing In RBI’s Sovereign Gold Bonds
- Tackle low liquidity in sovereign gold bonds by laddering, say analysts
- CBDT, tax tools make e-filing of I-T returns simpler
Tax Regime Mystery: Can You REALLY Change It Last Minute?
Written by Gagandeep Arora Printed on - Date - 18th May 2024
Filing your Income Tax Return (ITR) can be a breeze...or a total headache. But one thing's for sure: understanding tax regimes can make a big difference in your tax bill.
This year, the game has changed a bit. Let's break down the latest on new vs. old tax regimes, and how you can switch between them while filing your ITR for the Financial Year 2023-24.
New Tax Regime - Streamlined Taxes, Fewer Perks
The new regime offers lower tax rates, but ditches most deductions and exemptions you might be used to. Think of it as a simplified system, but with less wiggle room for tax savings.
Old Tax Regime - More Complex, More Flexibility
The old regime comes with higher tax rates, but also allows various deductions and exemptions to lower your taxable income. It's a bit more intricate, but can be beneficial if you have a lot of tax-deductible expenses.
So, Can You Switch Regimes Mid-Year or the time of Tax Filing? The good news is, yes! But there are a few things to keep in mind:
• Salaried Individuals: You have the freedom to choose either regime directly in your ITR form. No extra steps needed!
Even if your employer has deducted TDS based on new tax regime and you want to file your tax return in old regime you can do so.
• Business Professionals: Here's where it gets tricky. You can only switch regimes once in your lifetime. If you want to switch to the new regime, you'll need to file Form 10IE before July 31st, 2024. To switch to the old regime, you'll also need Form 10IEA (but only if you haven't switched before).
Things to Keep in Mind While Switching Tax Regime
• Know Your Options: Take time to understand the nitty-gritty of both regimes. What are the tax rates? What deductions are you giving up (or gaining)?
• Crunch the Numbers: Calculate your tax liability under both regimes. This will help you see which one saves you more money.
• Impact on Investments: Remember, some tax-saving investments might not be applicable under the new regime. Factor this into your decision.
• Future Planning: Think long-term. How might your income or life events affect your tax situation down the line?
Do you really need Tax Experts for filing your ITR?
Tax rules can get confusing, especially with regime changes. If you're unsure which regime is best for you, consider consulting with TaxManager’s tax experts who not just help you with selecting the right regime but also can can help you navigate the complexities and ensure you calculate your taxes rightly and file ITR online so that you can save the maximum.
Let our Tax Experts Claim Maximum Tax Refund for you
