Now taxpayers will have to apply to come in the old tax system. At the same time, if they do not do so, then the new tax system will be implemented automatically.
Reetu | Apr 30, 2023 |
Old V/s New Tax Regime: Do not be negligent in choosing Tax Regime; Some will get only one chance!
In the Budget 2023, Finance Minister Nirmala Sitharaman had offered a new tax regime, in which changes were made in the tax slabs to give more benefits to the taxpayers.
Another rule was changed under the new system, in which this system was implemented by default. That is, now taxpayers will have to apply to come in the old tax system. At the same time, if they do not do so, then the new tax regime will be implemented automatically.
In such a situation, the question arises that how many times a taxpayer can change his tax system? For information, let us tell you that under the Income Tax Act, some taxpayers get the facility to change it more than once, while some taxpayers can choose the new or old tax regime only once in their lifetime. So let’s know about these rules.
Salaried taxpayers have the option of changing their tax system many times under the Income Tax Act. However, only one arrangement can be chosen in the course of a financial year and must be kept until the end of the year. In such a case, if a salaried employee stays in the old system for the current financial year, he can switch to the new system in the following financial year if he so desires.
Unlike Salaried Taxpayers, Bussiness Taxpayers have only a once-in-a-lifetime opportunity of choosing a Tax Regime. The Default Tax Regime for business taxpayers is New Tax Regime. However, they may opt for the old tax regime. Once opted for old tax regime, The Business Taxpayer cannot opt back new Tax Regime.
Based on the information issued by the Income Tax Department, companies cannot choose new or old system for their employees on their own free will. For this, they need to know the opinion of the employees. If you work in a company, it is likely that your employer has also asked you to provide tax election information via text or mail.
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