How To Switch Tax Regime: Have you not selected the tax regime yet and the company has deducted TDS. If you want to change your tax regime, now is your chance. Can you switch from one tax regime to another? Let us know the answer in this article.
Every taxpayer has to select the tax regime before March. If he does not do this, he will automatically be selected in the new tax regime. If you have not yet selected the tax regime and the company has deducted TDS, then do not panic.
Let us tell you that Finance Minister Nirmala Sitharaman had changed the income tax slab in Budget 2023. Apart from this, he also announced the new tax regime. Now income up to Rs 3 lakh has been made tax free. The tax rebate limit has been increased to Rs 5 lakh.
In such a situation, if you have selected the new tax regime by mistake or even after thinking and now you want to go back to the old tax regime, then you can easily shift it.
Default tax regime
The default tax regime has become the new tax regime in the financial year 2023-24. In such a situation, even if any taxpayer has selected the old tax regime on April 1, 2023, the company will have deducted TDS under the default tax regime i.e. new tax regime.
Can the tax regime be changed?
The Central Board of Direct Taxes (CBDT) had issued a circular related to the tax regime in April 2023. In this circular he has not given any information about shifting or changing the tax regime. This means that there is no clarity yet on whether a taxpayer can change the tax regime or not.
However, according to many experts, if the company gives the taxpayer the option to change the tax regime, then the taxpayer can change or shift it. If this facility is not provided by the company then there is no cure for it.
You can choose tax regime while filing ITR
According to Tax experts, taxpayers can select the tax regime while filing ITR. Taxpayers can select any tax regime as per their choice.
