ITR filing 2025: How often can Indian taxpayers switch between new and old income tax regimes? | Mint

In India, taxpayers can choose between the old and new income tax regimes, each offering distinct benefits. However, this choice isn’t permanent and can be revisited annually. Whether you are a salaried employee or running a business, understanding how often you can switch between tax regimes is crucial for maximising your tax savings. In the Union Budget 2023, the new tax regime was made the default regime.

“Taxpayers with business or professional income, including Individuals, HUFs, AOPs (excluding cooperative societies), BOIs, or Artificial Juridical Persons, cannot switch between tax regimes every year. If they opt out of the new tax regime, they have only one opportunity to switch back, and once they do, they cannot revert to the old regime in the future. However, individuals with non-business income can switch between the new and old tax regimes annually. The choice to opt for the old tax regime must be made before the due date for filing returns under Section 139(1) of the Income Tax Act,” said Abhishek Soni, CEO and Co-founder Tax2win.

“There are no clear-cut provisions in this regard, but in my opinion, you can change your tax regime any number of times before the due date but not after that. All depends on how the ITR utility is configured,” said Balwant Jain.

Even after the due date, you can revise a return and change the tax regime, but only if the original ITR was filed by the due date of filing. In my opinion, you can file a revised ITR to correct an error or commission. He added that you can use the facility to file a revised return just to change your tax regime.

Tax regime selection rule for salaried taxpayers

Taxpayers with non-business income, such as salary, can switch between the new and old tax regimes yearly. However, the choice of tax regime can be made only before the due date of filing the income tax return (ITR).

“An individual with non-business income can switch between the new and old tax regimes yearly. Within the same year, again it is emphasized that the choice of old tax regime can be made only before the due date of filing the return u/s 139(1) of I-T Act,” the Income-tax department says on its website.

Tax regime selection rule for individuals with income from business/profession

Any individual with an income from a business or profession is not eligible to switch regimes more than once. For instance, once you choose the new tax regime, you can only switch back to the old regime once in your lifetime.

“As per Budget 2023, the new tax regime has been announced as the default tax regime. Taxpayers who wish to opt for the old tax regime must navigate the required process to select this option. To do so, they must file Form 10-IEA before due date of ITR filing, which allows them to exercise their choice between the new and old tax regimes,” said Abhisekh Soni.

ITR fling 2025

Filing your Income Tax Return (ITR) is an essential part of managing your tax obligations. The last date for non-audit taxpayers to file their ITRs for the Financial Year 2024-25 (AY 2025-26) is July 31, 2025. However, if you miss filing within the due date, you can still file a belated return before December 31, 2025.

ITR filing 2025: Which tax regime should you choose- new or old?

When filing your Income Tax Return (ITR) for 2025, a key decision is choosing between the old and new tax regimes. This choice significantly impacts your tax liability, so it’s essential to understand the differences.

Old Tax Regime: You can claim various deductions and exemptions, such as those under Section 80C (investments), 80D (medical insurance), and HRA (house rent allowance).

New Tax Regime: This regime offers lower tax rates but forgoes most deductions and exemptions.

Read all our personal finance stories here

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.