An easy way for taxpayers to switch to the old income tax scheme. If you feel you have made a mistake when choosing between new and old tax systems, here how to get back to the scheme you want:
Through the budget for the current financial year, Union Minister Nirmala Sitharaman announced the new tax system U/s 115 BAC with the consent of the volunteers. Taxpayers, especially employees, are allowed to choose between the old and the new system according to their choice. As the protocol states at the beginning of each financial year, employees must inform their employer of the tax system they want to go with.
For example, if you want to go with the old tax system first, then finally finds the news tax system more beneficial for you, but there is a way for you to switch to the new tax system.
You may also, like- Automated Income Tax Form 16 Part A&B and Part B which can prepare One by One Form 16 in Excel for the F.Y.2020-21 with the new and old tax regime
When filing ITR
The government has given workers a choice between the old and the new tax system. The decision is usually made at the beginning of the financial year, but if you have chosen the old tax system, you can switch to a new system return through a newly introduced Option Form 10-IE when filing an income tax if you find a new system to be more beneficial to you.
At any time of the financial year before filing an ITR, you cannot switch to another rule.
Benefits of Old and New Tax Regime
The new tax system is a lower tax system which means it has reduced the tax rate but the system does not allow any reduction in tax based on tax-saving investment like the old tax. On the other hand, the tax slabs under the old tax are unchanged but you can deduct yourself for tax-saving investments here.
You may also, like- Automated Income Tax Form 16 Part B which can prepare One by One Form 16 Part Bin Excel for the F.Y.2020-21 with the new and old tax regime
Tax slabs under the new tax policy.
According to the new tax regime, no tax is applicable to the income of Rs 2.5 lakh per annum. Above:
In addition to the relevant cess and surcharge.
By law, employees must choose between the old and the new tax system and inform their employer of their preferences; however, if someone is not sure about that decision, he or she must change his or her decision to file an ITR. If the employee encounters that the tax deducted is more than the actual amount payable, he can claim a refund for that additional duty (by filling out an online refund application) when paying the income tax refund.
