Do you want to make changes before filing ITR? Same rules

If a person does not file ITR before July 31, he will have to pay a fine. No exemption will be given. Now those who have still not filed their income tax returns and are wondering if they can switch from the old tax system to the new system at the last moment. Therefore, it is important for them to know this rule.

Last date for filing IT returns is 31 July

Less than a week is left to file returns. The department has made it clear that it is not going to make any changes in the last date for filing ITR. That is, if a person does not file his ITR before July 31, he will have to pay a fine. No exemption will be given. Now those who have still not been able to file their income tax returns and are wondering if they can switch from the old tax system to the new system at the last moment. Therefore, they should know this rule.

People who have different sources of income can switch between the old tax system and the new tax system every year. This option should be used while filing income tax returns.

these people only get 1 chance

However, for individuals having income from business, the tax regime chosen in the previous tax return is applicable in subsequent years as well. The tax system can be changed only once by submitting an application in prescribed Form 10IE on or before the due date of filing of income tax return under section 139(1) of the Income Tax Act.

The new tax system is a limited-term simplified tax system. Which tax system is more beneficial depends on the deductions available in the case of the taxpayer. The new tax system will be more beneficial for those taxpayers who earn money from salary as well as deductions under section 80C of the Income Tax Act.

Why is the old tax system better?

The old tax system may prove to be more beneficial for taxpayers with other eligible deductions like interest on home loan or home rent allowance (HRA). Also, it should be noted that the tax system chosen by the employees while declaring to the employer is not final and can be changed while filing income tax return. Let us tell you that if you choose the old tax system, then you can save your income up to Rs 12 lakh from coming under the tax net.