Navigating the Confusion: Which Tax Regime to Choose When Filing a Revised Return?

1
Navigating the Confusion Which Tax Regime to
Choose When Filing a Revised Return?
2

• Tax season can often feel like a maze of rules
  and regulations, and one of the recent changes
  that has added complexity for salaried
  individuals in India is the introduction of the
  New Tax Regime. To make things clearer, lets
  dive into the key points you need to know when it
  comes to choosing between the New and Old Tax
  Regimes and how revisions to your tax return are
  affected.
• 1. Choice of Tax Regime When filing your original
  tax return under section 139(1), you have the
  crucial choice between the Old Tax Regime and the
  New Tax Regime. This choice determines how your
  income will be taxed and the deductions you can
  claim. Old Tax Regime Under this regime, you are
  eligible to claim various deductions and
  exemptions such as HRA (House Rent Allowance),
  standard deduction, and deductions under sections
  80C, 80D, 80G, etc. These deductions help reduce
  your taxable income, potentially lowering your
  tax liability. New Tax Regime The New Tax Regime
  offers reduced tax rates but does away with most
  deductions and exemptions. This means youll pay
  tax at a lower rate on your income, but you wont
  be able to claim many of the tax-saving
  deductions available in the Old Tax Regime.
• 2. Revising Your Tax Return Now, heres where
  things get interesting. If you initially chose
  the Old Tax Regime when filing your original tax
  return, you cannot switch to the New Tax Regime
  when revising your return for that Assessment
  Year. Similarly, if you originally opted for the
  New Tax Regime in your original return, you cant
  switch back to the Old Tax Regime for that
  Assessment Year when revising.

3

• 3. Sticking to Your Original Choice
• Its essential to stick with the Tax Regime you
  selected in your original filing when revising
  your return. Attempting to change the regime
  during the revision process will not be allowed.
  Your return will be processed as per the regime
  you chose at the time of filing the original
  return under section 139(1). There wont be any
  warnings or options to switch regimes when
  revising your return.
• 4. The Importance of Simplicity To make the
  process as straightforward as possible, its
  advisable to keep things simple. Select the Tax
  Regime that aligns with your financial situation
  and goals when filing your original return, and
  then maintain consistency when revising. In ITR 1
  2 forms, there is no requirement to file form
  10IE for opting in or withdrawing from a regime.
  This means that your return will be processed
  automatically based on your initial choice, and
  there is no room for changing your regime during
  the revision. In conclusion, choosing between the
  Old and New Tax Regimes requires careful
  consideration of your deductions and exemptions.
  Once youve made your choice and filed your
  original return under section 139(1), its
  crucial to stick with that choice when revising
  your return for that Assessment Year. The tax
  department will process your return according to
  the regime you initially selected, and there will
  be no opportunities to switch. So, when it comes
  to your tax regime, keep it simple and consistent
  with your financial goals.-Read more
  at https//taxguru.in/income-tax/tax-regime-choos
  e-filing-revised-return.htmlCopyright
  Taxguru.in