What Is the Old Tax Regime?
India introduced two tax regimes: old and new. The old regime allows various deductions and exemptions. These include HRA, standard deduction, 80C investments, and more. Many salaried individuals prefer it because of these benefits.
The new regime offers lower tax rates but removes most exemptions. It suits people who don’t claim deductions or want simplicity. Taxpayers must choose wisely when filing ITR.
Can You Switch to the Old Regime While Filing ITR?
Yes, you can switch to the old regime when filing your Income Tax Return. The option depends on your income type.
Here’s the rule in simple terms:
| Type of Income | Can Switch While Filing ITR? | Need to File Form 10-IE? |
|---|---|---|
| Salary or Other Income | Yes, every year | No |
| Business or Professional Income | Only once (after switching) | Yes, before ITR due date |
If your income is from salary, you can change regimes every financial year. You don’t need to inform your employer or file extra forms. Just choose the regime while filing ITR.
If you have business or freelance income, the rule is stricter. You need to submit Form 10-IE before the ITR deadline. You can go back to the old regime only once after switching to the new one. After that, you’re locked in.
Old vs New Regime – Which One Is Better?
There is no one-size-fits-all answer. It depends on your income, deductions, and financial goals.
| Example Situation | Suggested Regime |
|---|---|
| You claim HRA, 80C, and health insurance | Old Regime |
| You have no deductions or investments | New Regime |
| You run a freelance or small business | Depends – calculate |
Use the income tax calculator on the official Income Tax portal. Compare both regimes before finalizing your choice.
Did You Know?
Over 60% of salaried Indians still prefer the old regime because of the tax-saving deductions.
Also Read: Can the Income Tax Department Read Your WhatsApp Chats in India?
Conclusion:
Switching to the old tax regime while filing ITR is easy if you’re a salaried person. Just make the right selection while submitting your return. If you’re self-employed or run a business, remember to file Form 10-IE in time. Always compare both regimes. Choosing the right one can help you save thousands in taxes every year.
Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, financial, or other professional advice. While every effort is made to ensure the accuracy and reliability of the information, laws and regulations may change, and individual circumstances vary.
Readers are encouraged to consult with qualified professionals or official government resources for personalized guidance regarding their specific situations. The author and publisher disclaim any liability for decisions made or actions taken based on the information provided herein.
