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New Tax Regime Query for ITR 3

Harsh Khemchandani (126 Points)

12 July 2024

If Assessee Chose in Ay 24-25 NTR my Question is whether he can choose OTR in AY 25-26 onwards?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 12 July 2024

Yes...

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Harsh Khemchandani (126 Points)
Replied 12 July 2024

Thanks for the reply sir. But When I opened the New vs Old Regime Faqs which is posted on the IT website. They said in first line of response that Assessee will not be given chance every year to choose between two regimes. 11) I am filing ITR in new regime for AY 2024-25. Can I switch between old and new tax regime in the next years? An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income will not be eligible to choose between the two regimes every year. Once they opt out of new tax regime, they have only one chance for switching to new regime. Once they switch back to the new regime, they won’t be able to choose old regime anytime in future. An individual with non business income can switch between the new and old tax regimes every year. Within the same year, again it is emphasized that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I T Act.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 12 July 2024

This condition applies to assessee having business income. They can shift to old regime & again to New regime only once. For others, not having business income, can switch regime any number of times.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177713 Points)
Replied 12 July 2024

Thanks for the reply sir. But When I opened the New vs Old Regime Faqs which is posted on the IT website. They said in first line of response that Assessee will not be given chance every year to choose between two regimes.
11) I am filing ITR in new regime for AY 2024-25. Can I switch between old and new tax regime in the next years?
An Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person with business or professional income will not be eligible to choose between the two regimes every year.
Once they opt out of new tax regime, they have only one chance for switching to new regime. Once they switch back to the new regime, they won’t be able to choose old regime anytime in future.

An individual with non business income can switch between the new and old tax regimes every year.
Within the same year, again it is emphasized that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I T Act.

Harsh Khemchandani (126 Points)
Replied 12 July 2024

Understood sir. Anyhow if Business income assesses chose NTR In AY 24-25 again they can change it to OTR in AY 25-26 then again if they need to change to NTR In AY26-27 its possible. Thanks sir for clearing the doubt.