Salaried individuals and those with non-business income can switch between regimes annually, as long as they decide before the ITR filing deadline under Section 139(1) of the Income Tax Act. 
Special 
Salaried individuals and those with non-business income can switch between regimes annually, as long as they decide before the ITR filing deadline under Section 139(1) of the Income Tax Act. Starting from the financial year 2023-24 (assessment year 2024-25), the new tax regime is now the default option. Unless taxpayers specifically opt for the old tax regime, tax will be deducted based on the new system by default. However, the process of selecting a tax regime depends on the source of income—salaried individuals follow different rules compared to those earning from business or profession.
Can you switch tax regimes every year?
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For those earning from salary, interest, or rent (non-business income), switching between the new and old tax regimes is allowed every year. If you chose the new tax regime last year, you can opt for the old one this year — provided you make the decision before the ITR filing deadline (July 31, 2025). However, the old tax regime is only available if the return is filed on time.
Rules for business and professional income earners
For business and professional taxpayers, switching tax regimes is more restricted. Once they opt for the new tax regime, they cannot freely switch back and forth. If they move to the old tax regime, they get only one opportunity to return to the new regime.
As per Budget 2023, those opting for the old tax regime must submit Form 10-IEA before filing their ITR to confirm their choice.
On the other hand, salaried individuals and those with non-business income can switch between regimes annually, as long as they decide before the ITR filing deadline under Section 139(1) of the Income Tax Act.
ITR filing 2025: Key deadlines
For taxpayers not requiring an audit, the ITR filing deadline is July 31, 2025 (for FY 2024-25, AY 2025-26). A belated return can be filed until December 31, 2025, but with a late fee.
If you realize after filing that you should have chosen a different tax regime, you can submit a revised return, but only if the original ITR was filed on time.
Which tax regime is better for you?
Before filing, it's essential to evaluate which tax regime suits you best.
Old tax regime: Offers deductions such as:
New tax regime: Features lower tax rates but excludes most exemptions and deductions.
Choosing the right tax regime can significantly impact your tax savings, so evaluate your options carefully before filing.
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