Old and new tax regime

Hii

switching between old and new income tax regime allowed only  for income under the head Salary 

In other head if we choose new regime then switching to old regime not allowed 

Situation 1: yes

Situation 2: yes

Situation 3: No.

To read more on the regime click here: https://www.taxontips.com/comparison-between-new-tax-regime-i-e-section-115bac-and-old-tax-regime-under-income-tax-income-head-wise-comparison/

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Thank you

1. Yes 

2. No , once exercised is for ever

- In case of income from business or profession, new regime once exercised can be withdrawn only once other than a previous year in which the option was exercised and therafter shall never be eligible to exercise the option except where income from business or profession ceases. 

1&2. Yes

3. Refere above note

For detailed discussion you may opt for phone consultation.

Like taking Example For F.Y.2020-2021 I am Processing for Filing - From FY 2020-21, we can have choice to pay income tax under an optional new tax regime. The new tax regime is available for individuals and HUFs with lower tax rates and fewer deductions/exemption. The new tax regime does not allow 70 deductions and exemptions. A Salaried taxpayer can choose the new tax regime at the beginning of FY 2020-21 and intimate their employer. The employee cannot change their choice anytime during the financial year. However, they can change their choice when filing the income tax return in July 2021. Similarly take decision for F.Y.2021-2022 - change choice when filing the income tax return in July 2022

In case an employee does not choose the new tax regime at the beginning of the financial year, the employer will deduct tax (TDS) under the existing tax regime. Hence, a salaried taxpayer can opt in and opt out every year. That means you can choose the new tax regime in one year and choose the regular tax regime in another year.

A non-salaried taxpayer has to choose the new regime when filing the tax return. They need not declare or intimate their choice to anyone during the year. However, a non-salaried taxpayer (taxpayers with an income from business or profession) cannot opt-in and opt-out of the new tax regime every year. Once a non-salaried opts out of the new tax regime, they cannot opt-in again for the new tax regime in the future.

From a tax planning perspective, choosing the tax regime at the beginning of the financial year is essential. A taxpayer must compare the income tax under the new tax regime with the existing regime. Also, the taxpayer has to furnish Form 10IE to the income tax department before filing the return if the taxpayer intends to opt for the new tax regime.

Hope this answer satisfies the query asked.

1. Yes

2. Yes

3. No, In case business income is also there you cannot switch every year.

Hi

Yes, you can switch between old and new tax regime.

However, if you have business income, you can only switch once.