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Till now I have filed ITR-3 in the old tax regime since I get business income apart from pension. Now, for AY2024-25, by default, a new tax regime is activated in my ITR-3. If I switch over to the old regime by filing form 10-IEA for AY2024-25, can I again switch to the new tax regime for AY2025-26? Please clarify.
T Balanarayana
Under the provisions of Section 115BAC of the Income Tax Act, 1961 (the Act), taxpayers have the option to choose between the old and new tax regimes.
If the old regime is selected for a particular financial year by filing Form 10-IEA, this choice will apply for subsequent years unless withdrawn.
However, withdrawal of this option is allowed only once, except for the year in which it was first exercised, after which reverting to the old tax regime is permanently disallowed under the first proviso to Section 115BAC(6) of the Act.
In case, you no longer earn income from business or profession, you may annually opt for the tax regime that provides you with the most advantageous tax treatment.
The author is a practising chartered accountant
Send your queries to taxtalk@thehindu.co.in
Published on August 3, 2024
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