Many taxpayers are confused about their tax regime while getting ready to file their Income Tax Return (ITR) for the financial year 2024–25. The common question is—can we switch the tax regime at the time of filing ITR, even if we told our employer something else earlier? Let’s understand how tax regime selection works and whether you can change it during ITR filing.
What Are Old and New Tax Regimes?
The government offers two tax regimes for salaried and non-salaried taxpayers:
- Old Tax Regime: Allows various exemptions and deductions like HRA, Section 80C, 80D, LTA, etc.
- New Tax Regime: Offers lower tax rates but no major exemptions or deductions.
While filing ITR, you can choose whichever regime gives you better tax savings. However, this depends on your income type, investment habits, and when you’re filing your return.
Yes, Salaried Employees Can Change Tax Regime While Filing ITR
If you’re a salaried person, then good news—you can change your tax regime while filing your return, regardless of what you informed your employer at the start of the financial year. For example:
- If you selected the old regime earlier but now find the new regime more beneficial, you can switch.
- Similarly, if you chose the new regime with your employer but now the old one saves you more tax, you can go back to it while filing ITR.
This flexibility is available only if you are filing the return before the due date.
How to Select Tax Regime in ITR Form?
When you fill out the ITR form online, there will be a specific question asking:
“Whether opting out of new tax regime under Section 115BAC?”
Here’s what you need to do:
- If you want to choose the old regime, answer “Yes” to this question.
- If you want to stay in the new regime, answer “No”, or leave it blank.
Remember, by default, the new regime is auto-selected. So if you don’t actively choose the old regime, the system will assume you’re filing under the new regime.
Important: Choose Before the ITR Deadline
This is where things get tricky. If you miss the ITR deadline, you will lose the right to switch to the old regime. So it is very important to file your ITR on or before the due date, especially if you’re planning to opt out of the new tax regime.
Here are the deadlines for filing ITR for FY 2024–25:
- 31 July 2025 – For most salaried individuals and non-audit cases
- 31 October 2025 – For businesses or professionals whose accounts are audited
- 30 November 2025 – For companies or entities involved in international transactions
If you file after these dates, the system will automatically process your ITR under the new regime, even if you wanted to switch.
What If You Have Business or Professional Income?
If you’re a business owner or self-employed professional, there are some limitations. You cannot switch between regimes every year like salaried individuals.
- If you opt out of the new regime once, you can switch back only once in your lifetime.
- Once you return to the new regime again, you are locked in permanently. You can no longer go back to the old regime in future years.
This rule ensures consistency and prevents frequent switching, which could be used to manipulate tax liabilities.
Why Choosing the Right Regime Matters
Choosing the right tax regime can save you a lot of money, especially if your income is high and you are eligible for multiple deductions. On the other hand, the new tax regime is simpler, especially for people who don’t have too many investments or exemptions.
Some common things to compare:
| Criteria | Old Regime | New Regime |
| Tax Rates | Higher | Lower |
| Deductions (80C, 80D etc.) | Available | Not available |
| HRA, LTA | Can claim | Not allowed |
| Best For | Investors, Homeowners | Beginners, No major deductions |
By comparing your total deductions and calculating tax under both systems, you can decide what suits you best.
Final Thoughts for ITR Filers
So yes, you can change your tax regime at the time of filing ITR if you’re a salaried individual and you file your return on time. You are not stuck with the regime you told your employer at the beginning of the year. However, if you are a businessperson, be cautious—you can’t change regimes every year.
Filing early gives you more control, fewer mistakes, and full flexibility in choosing your tax path. So don’t wait till the last moment—calculate your taxes under both regimes, make an informed decision, and file before the deadline.
