![]() The writer is partner, Nangia Andersen India. * Others must decide at start of the year, as it will impact amount of TDS on salary & advance tax Free to endeavor download Express Talk Business Edition Make calls over the Internet straight from your PC. * Those with income from business and profession should first consider the estimated income for the current and subsequent years However, this amendment will only place additional onus on the taxpayer to take informed decisions.Īlso read: Bank of India Multi Cap Fund: New Fund Offer from Bank of India Mutual Fund Check details In an effort to simplify the tax regime, it has made the new tax scheme the default regime. There is no doubt that the ministry endeavours towards making the new tax scheme attractive to the taxpayers. Remember, by making the new tax regime default, the onus is placed on the taxpayer to exercise the option and to select between the old and the new tax regime. The declaration filed with the employer is not absolute, as the option is exercised only at the time of filing ITR. When to decide between the old and the newįor individuals with income from business and profession, since the option exercised can be changed only once, the decision between the old and the new tax regime should be made after considering the estimated income for the current and subsequent years.įor others, the decision should be made at the start of the year, because the decision will impact the amount of TDS deducted for salaried employees and advance tax for others. For others, the option must be exercised along with the return of income to be furnished under Section 139(1) of the Act and can be changed every year. ![]() For a change in the option, one must file an application in prescribed Form 10-IE on or before the due date of filing the ITR for that particular year. The option once exercised applies to all subsequent years and can be withdrawn or changed thereafter only once. Download Express Talk Softphone for Windows Combine Express Talk with other programs in our telephony suite such as Axon, a Virtual PBx System, to create a customized phone system to for your business. For individuals earning income from business and profession, the option must be exercised on or before the due date of filing the income tax return (ITR) under Section 139(1). The time limit to opt for the old tax regime depends on the nature of income. So, by default, income tax of the taxpayer will be calculated as per the new tax regime, unless the taxpayer specifically opts for the old tax regime within the prescribed time limit.Īlso read: HDFC AMC launches three new fund offers What this amendment does, is provide a deeming provision. How much Income Tax will you have to pay if earning Rs 7 lakh, Rs 10 lakh, Rs 15 lakh under New Regime?Ī lot of confusion followed the finance minister’s announcement that the new tax regime will be the default tax regime.
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