Income Tax: Can You Change Tax Regime While Filing ITR?
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Income Tax Return: Salaried individuals and pensioners can switch tax regimes every year while filing their ITR, while taxpayers with income from business or profession can switch regimes only once in lifetime.
While filing ITR, the tax software or utility will ask if you want to opt for the new tax regime under Section 115BAC.
Income Tax: With the introduction of the new income tax regime under Section 115BAC, taxpayers in India now have the option to choose between the old tax regime (with deductions and exemptions) and the new regime (lower tax rates but no deductions). But, a common question many taxpayers ask is: Can I change my tax regime while filing the Income Tax Return (ITR)?
The answer depends on your source of income. There are two categories of taxpayers — salaried individuals (or pensioners) and individuals with business or professional income.
Who Can Switch Tax Regimes While Filing ITR?
Salaried Individuals (or Pensioners):
Yes, salaried individuals and pensioners can switch tax regimes every year while filing their ITR. Even if you have informed your employer about choosing a particular regime for TDS purposes, you can change it at the time of filing your return.
For example, if you opted for the new regime with your employer, but later find the old regime more beneficial after calculating all deductions, you can switch to the old regime while filing ITR.
Individuals with Business or Professional Income:
Taxpayers with income from business or profession can switch regimes only once. Once they opt for the new tax regime, they can go back to the old regime only once in a lifetime.
After switching back to the old regime, they cannot choose the new regime again in future assessment years (unless they stop having business/professional income).
How to Choose or Switch Regime in ITR?
While filing ITR, the tax software or utility will ask if you want to opt for the new tax regime under Section 115BAC.
Choose “Yes” if you want to opt for the new regime, or “No” to stick with the old regime.
This choice directly impacts your tax calculation and payable amount.
If you are opting for the new regime and have business income, you must file Form 10-IEA before filing your ITR, starting from AY 2024-25 onwards.
When Will ITR Filing Start This Year?
The process of ITR filing usually begins in April after the Central Board of Direct Taxes (CBDT) releases the updated forms. For AY 2025–26 (Financial Year 2024–25), the forms are likely to be notified and available for electronic filing this month. Last year, the ITR forms were notified in February and e-filing began in April — indicating a trend toward early availability.
However, for most salaried taxpayers, actual filing typically starts in late May or June once they receive Form 16 — a key document issued by employers that summarises the salary paid and TDS deducted during the financial year. Employers are mandated to issue Form 16 by June 15 each year.
So while the filing portal may open in April, the bulk of salaried individuals usually begin filing in mid-June, once they have all required documents in hand.