ITR Deadline: Today is the last date to file ITR, but can you still switch your tax regime?

Today, July 31, is the deadline for filing Income Tax Returns (ITR). While crores of taxpayers have already filed their returns, a large number of people are doing so on this final day. A major question on the minds of lakhs of taxpayers concerns the choice of tax regime. Selecting the wrong tax regime while filing your ITR could cost you thousands of rupees. Many people struggle until the last moment to decide between the Old Tax Regime and the New Tax Regime. If you are wondering whether the tax regime can be changed while filing your ITR, this information is for you.

Can you change the tax regime while filing your ITR?
Salaried taxpayers can choose between the Old and New tax regimes based on their specific needs when filing their ITR. This means that even if your employer deducted TDS based on the New Tax Regime, you still have the opportunity to switch regimes when filing your return. If you had opted for the New Tax Regime at your workplace but now realize that the Old Tax Regime offers greater tax savings, you can switch to the Old Tax Regime before submitting the form. Similarly, you can opt for the New Tax Regime if required.

What happens to the tax and refund?
After filing your ITR, your final tax liability will be determined based on the regime you selected in the return. If you have accurately declared all income and deductions, the outcome—whether you receive a tax refund or need to pay additional tax—will be calculated based on that choice.

Keep these points in mind if choosing the Old Tax Regime
If you opt for the Old Tax Regime, you must be eligible for all the tax exemptions and deductions you are claiming. Additionally, you should have the relevant supporting documents available should they be required. Making an incorrect claim could lead to complications later.

**Different rules for business owners**
It is important to note that the facility to switch tax regimes is not the same for everyone. If your income is derived from a business or profession, the rules for changing tax regimes differ. In such cases, frequent switching between tax regimes is not permitted. Therefore, business owners should thoroughly understand the rules before deciding between the old and new tax regimes.

**How ​​to switch tax regimes while filing your ITR?**
To switch tax regimes, you must select your preferred option while filing your ITR on the Income Tax e-filing portal.

First, log in to your account and select the appropriate ITR form.
Next, navigate to the 'Tax Regime' section and choose your preferred option.
Then, enter your income details and claim the exemptions or deductions applicable under the chosen regime.

You may also need to complete formalities such as filing Form 10-IEA, where applicable.

**Avoid last-minute haste**
If you have not yet filed your ITR, do not select a tax regime simply to rush the process. First, verify which regime results in a lower tax liability. Choosing the right option can often lead to tax savings of thousands of rupees. Therefore, make sure to carefully review all information and your chosen tax regime before submitting your return.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.