Income Tax News: The Income Tax Act of India gives taxpayers the option to select between the previous and the current tax regimes. The new tax regime has replaced the previous one effective for the Financial Year (FY) 2023–2024. If people believe the previous tax system to be more advantageous, they may still choose to use it. This is a comprehensive reference on how to file your Income Tax Return (ITR) for FY 2023–2024 using the old income tax regime.
Understanding the Tax Regimes
Old Tax Regime: The previous tax system provided a number of exemptions and deductions, including the standard deduction, HRA, LTA, and deductions under sections 80C and 80D, among others.
Although the tax rates are greater than under the new tax law, the taxable income can be greatly decreased by the deductions.
New Tax Regime: While there are lower tax rates under the new tax regime, most of the deductions and exemptions from the previous tax regime are no longer available.
It is more basic and easier to understand, making it appropriate for people without large investments to deduct.
Steps to Opt for the Old Tax Regime
Form 10-IEA Submission: In order to choose the previous tax system, Form 10-IEA must be submitted. To notify the Income Tax Department of your decision to switch from the new to the old tax regime, you must fill out this form before completing your ITR.
Login to the Income Tax Portal: Go to the official Income Tax e-filing website and enter your login information.
Select the Appropriate ITR Form: Choose the correct ITR form based on your sources of income. Forms ITR-1, ITR-2, and ITR-3 are frequently utilized.
Filling the ITR Form: You will have the choice to select between the existing and new tax regimes while completing the ITR form. Opt for the previous tax regime.
Calculate Your Income and Deductions: Make sure to accurately compute your total income from all sources and deduct the appropriate amounts. This will assist in precisely calculating your taxable income under the previous tax system.
Verify and Submit: After completing all the fields, carefully check the form. After verification, send in your ITR.
Important Dates and Deadlines
Form Submission: Make sure you file Form 10-IEA before filing the ITR.
ITR Filing Deadline: July 31, 2024 is the deadline for filing the FY 2023–2024 ITR.
Benefits of Choosing the Old Tax Regime
Higher Deductions and Exemptions: Under the previous tax system, taxable income could have been lower for individuals with sizable investments and expenses that qualified for deductions.
Flexibility: Every year, you can assess your financial status and select the regime that maximizes your tax benefit.
Conclusion
When completing your FY 2023–24 ITR, you must choose the old regime option and file Form 10-IEA in order to switch to the old tax regime. Through this method, taxpayers might potentially reduce their tax bill by utilizing a variety of deductions and exemptions. To determine which regime best suits your financial circumstances, it is essential to conduct a thorough analysis of your income and deductions. Taxpayers can guarantee a seamless filing process and maximize their tax benefits under the previous tax regime by adhering to the specified procedures and fulfilling the deadlines.