Do you want to change your chosen tax system, know the rules and procedure

Income Tax: Income tax return filing has started. Taxpayers can file returns till July 31. While filing income tax return you have to select a specific tax regime according to which you can avail tax deductions and refunds. The working class has to choose between the new or the old tax system every year. However, often knowingly or unknowingly the tax burden increases after choosing a new tax regime. Do you know that after choosing a new tax regime, you can change it to the old tax regime?

Which diet is best for whom?

There are two types of income tax filers. One business class and the other salaried class. The opportunities to choose tax regime are also different for both. People earning from business have only one chance to change the tax system. They can switch between two tax systems only once in a lifetime, not in a year.

In contrast, salaried people can change the tax regime every year. Suppose, last year you paid tax under the new tax system, but this time you feel that it would have been better to choose the old tax system, then you can switch. At the beginning of each year, the employee must inform his employer under which tax regime he wishes to claim his tax deduction. The employee can choose either of the two as per his wish and the employer has to deduct tax from the salary accordingly.

Is it easy to change power?

In the new financial year, if you have opted for the new tax system instead of the old one, then there is no need to worry. You will be able to opt for the old tax regime when you file your return for this assessment year. So can't the tax system be changed immediately? When we told this to CA Prashant Jain that he was dependent on your company. If there is a company policy then you can change it immediately, if the company policy does not support it then it is difficult to change it.

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CA Prashant Jain said that if you want to change it immediately, you can talk to your HR department and know the process. You may have the opportunity to change the tax arrangement by sending an official email immediately after you and the HR Manager approve it. At the beginning of the financial year you have given your company only one of two tax deduction arrangements. The company will deduct tax as per its own. This communication is only between you and your company, not between you and the Income Tax Department.

You can change the tax system at any time. The law allows you to do this. But you have to see what your company's policy is on this. This can be done easily in small companies, but in big companies if more people start making such demands then the company may have to face problems.

The new tax regime has been made the default regime in Budget 2023. If you do not choose any option at the beginning of the new financial year, your TDS will be automatically deducted as per the new tax regime. Keep this in mind and while choosing the tax system, keep in mind which tax system you want to choose.