04 January 2024
Chosen new tax regime by filling the form 10IEA in ay 21-22 and filed, then ay 22-23 filed by choosing old regime ( by mistake and no withdrawal form filed). Now, can I change the tax regime from old to new ( ie. By selecting 'yes' for the new regime in the ITR 4 under general information ) through rectification sec 154, by return data correction in response to notice sec 143?
16 January 2024
Salaried Individual A salaried individual can switch between the new and the old tax regime in every financial year. While the new tax regime will be the default tax regime in F.Y. 23-24, individuals can switch to the old regime depending on their income.
Individuals with Income from Business or Profession Although individuals can switch between the old and new regimes, any individuals with an income from business or profession are not eligible to switch the regime more than once. For example, if an individual with a business income switches from the old to the new regime in F.Y. 2023, he/she won’t be eligible to switch again. Once an individual with a business income opts out of the new tax regime, they cannot opt-in again for the new tax regime in the future.
But , it was done unintentionally and no withdrawal form 10IE is filed . It happened by mistake chosen or mark as tick in the old regime box instead of New regime selection and tax calculation was done based on the old regime. I came to know upon the notice served by the authority.
As such we are not going to change any income or deduction as mentioned in our original ITR . through rectification mode, we can correct it. Once the correction is done my tax will be reduced significantly.
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