Filing ITR? Selection Of A Regime Now Mandatory For Tax Payers

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posted on 10 months ago — updated on 1 second ago

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According to the department, as of the current fiscal year, the new tax regime has been made as default.

Three months before the end of the fiscal year, the Income Tax (IT) Department has made the Income Tax Return (ITR) form available for submission. The form used to file returns has undergone significant modifications from the department once more. Taxpayers will need to exercise extreme caution while filling out the ITR form and submitting their return. The income tax return form for the fiscal year 2023–2024 and the assessment year 2024–2025 has been made available by the IT Department. According to the department, as of the current fiscal year, the new tax regime has been made as default. This implies that the taxpayers’ taxes will only be computed using the new regime. If they want to choose the old regime, then they will have to select the option afresh. A taxpayer’s tax will be computed in accordance with the new tax regime, if he does not select one. Taxpayers who wish to save tax on their investments and savings, should opt for the previous regime.

Tax experts say that ITR Form 1, issued especially for employed people, has been linked to the new regime by default. This means that if a taxpayer wants to take advantage of tax savings, he will have to choose the old regime. If you have purchased insurance or invested under 80C, then you will have to give up the new option to get tax exemption. If a taxpayer wants to opt out of the new tax system, they must fill out a separate form in addition to ITR Form 4. Form 10-IEA has been provided by the department to these taxpayers. The department will inquire about your want to opt out of the new tax regime under section 115 BAC (6) as soon as you go to file your ITR. If you select “no,” the previous tax calculation method will be used to open your ITR form. If you choose “yes,” then the tax calculation will be completed using Form 10-IEA in accordance with the previous system.

The Income Tax Department has also said that now taxpayers will have to provide more information in the income tax return form. It has also been made mandatory to mention all bank accounts. This means that if a person has more than one bank account, details of all of them will have to be given, while filing ITR. The IT Department has also created a proper column for this in the ITR form.