How to Switch Between the Old and New Regime while Filing Income Tax Return 2025

To switch between old and new tax regimes while filing your Income Tax Return (ITR) for FY 2024-25 (AY 2025-26), the process depends on whether you have business or professional income or only salary/other income. Here’s a detailed guide:

1. For Individuals with Salary or Other Non-Business Income

✔ You can switch between old and new regime every year while filing your ITR.
✔ No special form or declaration is needed beforehand.

How to switch at the time of ITR filing:

✅ Step 1: Login to the Income Tax e-Filing portal
✅ Step 2: Select the applicable ITR form (commonly ITR-1 or ITR-2)
✅ Step 3: While filling the ITR, you will see a section asking:
“Whether opting for taxation under section 115BAC?”

• Yes: Means you are choosing the New Tax Regime
• No: Means you are opting for the Old Tax Regime
  ✅ Step 4: Choose accordingly and proceed with your filing.

2. For Individuals with Business or Professional Income

✔ You can switch regimes, but with restrictions.
✔ You can opt for the new regime only once; if you opt out later, you cannot switch back to the new regime unless you cease to have business/professional income.

Filing Form 10-IEA:

✅ If you have business/professional income and want to opt for the new tax regime, you must file Form 10-IEA before filing your ITR.
✅ Form 10-IEA is available on the Income Tax portal under e-File → Income Tax Forms.
✅ This declaration is valid as per provisions of Section 115BAC(6).
✅ If you had earlier opted out of the new regime, you cannot opt back in unless your business/profession income ceases.

3. Summary Table for Switching

Important Notes

• New tax regime is now the default regime from FY 2023-24 onwards. If you want to opt for the old regime, you must actively select it while filing ITR.
• Always calculate your tax liability under both regimes before filing, to decide which is more beneficial.