It’s the beginning of a new financial year and employers have started rolling out the tax declaration form for employees. For salaried people, the option of selecting between old and new tax regimes is available every year. At the time of filing the Income Tax Return (ITR) also, they can switch from old to new regime or vice versa, whichever is more beneficial.
Also Read– Your queries: Income Tax – Show PPF, gratuity proceeds in ITR
Do not that certain deductions and exemptions are available under the old regime but not the new one. With effect from 1 April, unless you specifically opt for the old regime, the new regime will be considered the default option and accordingly, TDS (tax deducted at source) will be computed by the employer. Suppose, you do not specifically choose the old regime but decide to opt for it at the time of filing ITR, you can at that point of time still claim certain deductions like those available under sections 80C and 80D, housing loan interest, etc., even if these have not been declared to the employer. However, there are some exemptions that you may not be able to claim if they are not a part of your salary structure.
