News

Income Tax clarification: Can you switch between New Tax Regime and Old while filing ITR?

Income Tax clarification: Can you switch between New Tax Regime and Old while filing ITR?

The New Tax Regime will apply for income earned during the financial year 2020-21 or assessment year 2021-22, for those opting for it. As there is an incidence of tax deducted at source (TDS), the concern with many taxpayers and TDS deductors was about the timing of exercising of this option by the taxpayers. When should the employee inform his or her employer and what if one changes the option while filing the ITR? 

In order to avoid the genuine hardship in such cases, the CBDT has clarified that an employee, having income other than the income under the head ‘Profit and Gains of Business or Profession” and intending to opt for the concessional rate under section 115 BAC of the Act, may intimate the deductor, being his employer, of such intention for each previous year and upon such intimation, the deductor shall compute his total income, and make TDS accordingly.

Top