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Employees can switch I-T regime in same year

Employees can switch I-T regime in same year

Salaried people can choose either of the two income tax regimes at the time of filing their returns irrespective of the choice they have given to the employer at the beginning of the financial year, a senior government official said.

The budget for the next fiscal has proposed to add a new tax regime to the existing one.

From April, taxpayers will have the option to choose the proposed lower tax rates with no exemptions, or the existing regime that allows for deductions and exemptions.

Employees can switch if they feel they had paid more tax under the regime that they had indicated to the employer at the beginning of the financial year to deduct tax at source, the official said.

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