Things to be Remembered for New Tax Regime

Things to be remembered for Tax Regime from AY 2024-25

• Default Tax Regime is New Tax Regime u/s 115BAC, it means if you want to opt for Old Tax Regime then you have to select it specially in ITR Form
• If you are filing ITR 1 or ITR 2 then you can select any regime Old or New while filing ITR and No need to file Form 10IEA for opting old tax regime for AY 24-25 and opting out of old tax regime from AY 25-26
• If you are filing ITR 3 or ITR 4 then you can select old tax regime by Filing Form 10IEA for AY 24-25 and later on if you want to opt out of old tax regime from AY 25-26 onwards then again filing of Form 10IEA is mandatory and after that you can’t opt for old tax regime again
• For opt in or opt out of old tax regime you have to excercise option on or before due date u/s 139(1)
• In Old Regime Tax Rebate u/s 87A is Rs.12,500/- subject to total income of Rs.5 Lakh and in New Regine Tax Rebates u/s 87A is Rs.25,000/- subject to total income of Rs.7 Lakh
• If you have a deduction u/s 80C only or No Any Deductions then Never go for the old regime, the new regime is always beneficial & If you have claimed deductions for home loan interest, section 80C and section 80D then Never go for the new regime, the old regime is always beneficial
• Whatever you have opted till AY 23-24 have no impact on regime selection option from AY 24-25 (AY 24-25 is the first year for filing form 10IEA for opting old tax regime for ITR 3 or ITR 4)

In conclusion, staying informed and proactive is key to navigating the tax regime from AY 2024-25 onwards. Keep track of the latest updates, comply with tax laws, and engage in tax planning to ensure a smooth tax filing experience. By following these tips, you can effectively manage your tax liabilities and secure your financial future.