July 31st is the deadline for ITR Filing. Some people are perplexed by the old and new tax regimes in such a scenario. If you wish to switch from the previous regime to the new one in such a circumstance, this is the process.
ITR Filing
This year, July 31st, is the deadline for filing ITRs. You have two days remaining if you haven’t filed your return yet. Yes, you can pay income tax under both the old and new tax regimes. Depending on which of the two is better for you, you can choose. Every year, you have the option to choose between the old and new tax regimes if you do not receive any revenue from a business. But this facility is not for such people whose money comes from business or any other profession. If you are also one of such taxpayers, then you cannot change your regime every year. Once you select a regime, you will have to pay tax accordingly. The date of ITR Filing is also different for such people. These people have to get their income certified by a CA. For this reason, the Income Tax Department gives more time to the business class to file more returns.
Which tax system—the previous one or the new one—is superior?
When discussing whether a tax regime is superior—the old or the new one—we might say that their advantages are nearly identical. But your income determines which perks you get. For instance, the previous tax system is preferable for you if you have invested in various tax-saving plans. However, the new regime makes tax calculations simple and does not offer any investment exemptions. In the previous tax system, there were numerous kinds of tax exemptions. You may make claims for Leave Travel Allowance (LTA) and House Rent Allowance (HRA) under this. If you are eligible for an exemption on these, then the old regime can be good for you. But you get the new tax regime assessment year 2024-2025 automatically. If you do not select the old regime yourself, then you will have to pay taxes under the new regime.
This is the process for modifying your tax payment method.
Form 10-IE must be submitted with your Income Tax Return (ITR) if you wish to modify the way you pay taxes. However, you will not be allowed to alter the method for the entire year if you don’t complete this before the deadline. You will receive a 15-digit identification number after submitting Form 10-IE, which you must provide with your income tax return.
What is an IEA Form 10?
Form 10-IEA is intended for individuals who submit their income taxes on Forms ITR-3, ITR-4, or ITR-5 and make money from their business or profession. Those who choose to pay taxes under the previous system but not the new regime. Common people, Hindu Undivided Family (HUF), Association of Persons (AOP) (except cooperative societies), Group of Individuals (BOI), and legal persons who earn money from business or profession can use this form.
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