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Income new and old scheme

19 July 2020

Hello Experts,

Can i change my salary tax scheme new and old every year based on my tax payable...?

Thank you
Vijith T K

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6 Replies

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 19 July 2020

Yes... You can compute Your salary income under new scheme...

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T K Vijith (143 Points)
Replied 19 July 2020

Can i change the same every year. say example FY 2020 2021 I am availing new scheme.. in 2021 2022 I want to go back again old scheme.. is that possible ??

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 19 July 2020

No... It's not possible.

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 19 July 2020

According to the explanatory memorandum to the Finance Bill, taxpayers having business income are not eligible to choose between the existing tax regime and new tax regime every year. This would mean that salaried individuals and pensioners would be eligible to switch between new tax regime and old tax regime as per their convenience every year provided they don't have business income.