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Can you change the income tax regime while filing ITR? Here's what taxpayers should know
Mint 12 hrs ago·28 Jul 2026, 4:48 pm
Salaried taxpayers can choose between the old and new income tax regimes when filing their Income Tax Return (ITR), regardless of the tax deduction method used by their employer. This flexibility allows individuals to select the option that results in lower tax liability for the specific financial year. However, this choice is not automatic; it must be explicitly made by the taxpayer on their ITR form. This option is generally not available for those with business income, who are usually restricted to the regime they have opted for under the Income Tax Act.
For investors, this development highlights the importance of reviewing personal tax strategies annually. Since the new regime offers lower tax rates but fewer deductions, taxpayers should calculate their liability under both options to determine the most beneficial choice. This decision can directly impact net returns and cash flow. Investors should also monitor upcoming policy updates or budget announcements that may further alter the relative benefits of these regimes.
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