The deadline for filing income tax for the financial year 2023-24 is July 31. There is a lot of confusion among taxpayers about the old tax regime and the new tax regime. There are many questions in the mind of every salaried class regarding this. Which we are going to talk about here. First of all, let us tell you that under the current Income Tax Act, taxpayers are being allowed to choose either the Old Tax Regimes or the New Tax Regimes for tax deduction on salary. This option is applicable for the entire financial year.

From April 1, 2023, if an individual taxpayer has not opted for the old tax regime, his employer will deduct tax from his salary based on the new tax regime. This is because the new tax regime has been implemented as the default option from the financial year 2023-24. At the same time, no changes have been made in the Income Tax Rules in the Interim Budget 2024. Therefore, the new tax regime will remain the default option for the current financial year 2024-25 as well.

For which taxpayers will the new tax regime apply by default?

According to the Income Tax Department website, the default option of the new tax regime for deduction of tax on salary will be applicable for:

• Individuals
• Hindu Undivided Family (HUF) (except co-operative society)
• BOI
• Artificial Juridical Person

Is it possible to switch tax regime while filing ITR?

It is possible to switch to Old or New Tax Regime while filing ITR. You can select this option while filing your Income Tax Return (ITR Filing). You have to select a checkbox for Old or New Tax Regime and provide details of the same in Form 10IE.

According to the income tax website, if you want to opt for the old tax regime and you are eligible to file returns in ITR 1 and 2, then directly choose the 
corresponding option in ITR and file the return within the prescribed due date. If you are eligible to file returns in ITR 3, 4 and 5, then you must file Form 
10-IEA before the due date under section 139(1).

In the ITR form, the person is asked "Do you wish to opt out of the new tax  regime under section 115BAC(6)? (Default is No)". If you choose no, your tax 
liability will be as per the new tax regime slabs. While choosing yes means that you are opting for the old tax regime. In such a case, you will pay tax as per
 the income tax slabs under the old tax regime.

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A new Income Tax Calculator has been launched by the IT Department. It helps the tax payers to decide whether the old tax regime or the new tax regime would be better for them? Income tax calculator is available on the internet.

Helpful in budgeting for the entire financial year

With the help of tax calculator, you can know about income, deduction and tax credit. With the help of tax calculator, you can frame a general idea regarding tax return. Calculating income tax will help you to budget for your entire financial year. If you already have an idea of ​​tax deduction for the whole year, then you can plan about your expenses.

How to use Income Tax Calculator

To use the Tax Calculator, the tax payer must first login to the portal of the Income Tax Department. Now here you have to give your related information like type of taxpayer, gender, residence status, sources of income other than salary, home loan interest and investment etc. On this basis, this tax calculator will tell you whether the new tax regime is better for you or the old tax regime?

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The Income Tax Department has come up with its own tax calculator. Where tax can be calculated easily. Let me tell you, at present there is a two tax system. People filing ITR will have to choose either of these two.

The Income Tax Department tweeted, “Tax calculator is now live! A tax calculator prepared keeping in mind the old tax regime and tax regime where individuals / HUF etc. will be able to calculate their tax by visiting the income tax website.

An instruction has also been pasted with this tweet. In which it has been said that only basic tax calculation is done through this tax calculator. The Income Tax Department has said that to know the correct tax calculation, calculate according to the rules.

Tax Calculator is now live!

A dedicated tax calculator to check Old Tax Regime vis-à-vis New Tax Regime for Individual/HUF/AOP/BOI/Artificial Juridical Person(AJP) as per Section 115BAC can now be accessed on the IT Dept website.

Pl check the link below:https://t.co/dy04iY4oj5 pic.twitter.com/JF4VfmXQw4

— Income Tax India (@IncomeTaxIndia) February 20, 2023

New tax regime

Under the new tax regime, there will be no tax on income up to Rs 3 lakh. On the other hand, 5 percent on income of Rs.3 lakh to Rs.6 lakh, 10 percent on Rs.6 to 9 lakh, 15 percent on Rs.9 lakh to Rs.12 lakh and 20 percent from Rs.12 lakh to Rs.15 lakh and above Rs.15 lakh. will be taxed at 30 per cent on his income. Also, if your income is more than Rs 15.5 lakh, then standard deduction of Rs 52,500 will also be available.

Old tax regime

This time too, the old tax system has not been changed by the government. Hence, no tax up to Rs 2.50 lakh, 5 per cent on income above Rs 2.5 lakh and up to Rs 5 lakh, 20 per cent on income above Rs 5 lakh and up to Rs 10 lakh and 30 per cent on income above Rs 10 lakh. Tax will be levied. But tax payers will have the option to save tax through schemes like NPS, PPF etc.

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Income Tax Return Filing: It is mandatory for the taxpayers to file Income Tax Return. A deadline is issued by the government to fill it, within which taxpayers have to pay tax in any case. But some people are not able to file their Income Tax Return even by the due date. After that they have to pay tax along with fine. This penalty is collected as Income Tax Return (ITR) late fee.

have to pay fine

The last date for filing Income Tax Return (ITR) for the financial year 2021-22 was 31 July 2022. Taxpayers whose accounts are not required to be audited were to file income tax returns by this date. Such taxpayers who have not filed ITR by July 31 will have to pay a fine of Rs 5000 i.e. late fee.

Know till when you can pay tax?

The last date for individual or HUF or AOP or BOI (whose accounts are not to be audited) was July 31, which has passed. At the same time, the deadline for the accounts to be audited is 31 October 2021. Apart from this, business people whose TP report is required can file ITR till 30th November.

Know what are the terms and conditions?

Those whose date of 31 July has passed and they could not file their return due to some reason, they will now be able to file their return till 31 December 2022, but there will be some conditions. This return is called belated return, late return or revised return. Under this facility, you will file the return but you will be deprived of the benefits of interest and set-off, along with paying some penalty.

Date is till 31st October

Salaried individuals were required to file their income tax returns by 31 July, while corporates or those who need to audit their accounts can file their returns by 31 October of the assessment year. In such a situation, these people will not face any penalty for filing ITR return by 31 October.

Income tax filing is mandatory

Significantly, the department has been continuously requesting the taxpayers to submit the returns within the stipulated time to avoid the burden of late fee. However, this year a large number of taxpayers have filed returns as compared to the previous years. At the same time, now the holders of the account to be audited should also fill the tax in time.

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