There have been many examples where an individual taxpayer has selected the old tax system in his office investment manifesto, but he wants to know if he can file ITR under the new tax system during the actual filing.

CA Kinjal Bhuta, secretary of the Bombay Chartered Accountants Society, told Zee News that the switch between arrangements is possible only for individuals who have no commercial income.

Says Bhuta, “A salaried person can choose the tax system before the season of filing returns every year. However, it usually happens that the salaried person has to choose the tax system close to the start of the financial year with the employer. Since the taxation slab and tax rates under the old system and new system are different, so the employer will require the requirement of each employee so that the employee will be required so that the person is different in the beginning of the year. Could. ” Bhuta says that pre -understanding is necessary for employers to deduct tax at source from pay income every month.

In addition, some of the most strange differences between the old system and the new system are the cuts available under the chapter via under the old system. Is there any difficulty while changing the old tax system while filing ITR? Bhuta said that there are some cases where the salaried taxpayer had selected the old tax system with the employer at the time of investment announcements and then while filing the ITR, he realized that the new tax system was more beneficial. In that case, the taxpayer can decide to choose a new tax system while filing income tax returns.

Changes in the new tax system when filing the actual ITR: Keep this in mind

Those who file ITR should keep one thing in mind while making changes. Bhuta said that the calculation of salary income will be different from the calculation shown by the employer in Form 16A-Part B and Form 26AS.

Also, the returns to be filed will have refund conditions which will be different from the functioning of the employer, he said.

There is little possibility of interrogation by the CPC about the mismatch between the 26AS and income shown in the income tax return, but it can be easily completed. Section 115 BAC (6) allows the taxpayer to choose a new tax system until the income tax returns are filled. Bhuta says that this option is available only in cases where returns are filed according to the time limit of Section 139 (1), not on any delayed returns.

New tax system vs. Old tax system: Which option is more suitable?

Sudhir Kaushik, co-founder and CEO of the Caxponer (Zagal's subsidiary), advises that it is a better option for individuals who get 13 lakh and above gross salaries.

“Switching in the new tax system from the old tax system while filing the Income Tax Return (ITR) is an option to individuals. For those who get 13 lakhs and above, we recommend to remain with the old tax system. While the new tax system potentially provides low tax rates, it does not contribute significantly in achieving long-term financial goals. It does not contribute significantly in achieving long-term financial goals. In the earnings period of 30-40 years, it does not contribute. Do not provide direct benefits, ”says Kaushik.

Kaushik says that the old tax system supports financial welfare by taking advantage of various benefits. He highlights the following points.

A) Rebate: House rent allowance (HRA) and Leave Travel Allowance (LTA).

b) Tax-skilled features: Such as food coupons, company car lease, fuel and maintenance, driver's salary, learning and development expenditure, gifts up to Rs 5000, books and magazines, and health and well -being benefits.

C) deduction: This involves adjustment for home loan interest up to Rs 2 lakh, which has the ability to carry any balance forward; Unlimited deduction for education loan interest; And the bank interest includes deductions under Section 80C, 80 CCD (1B), 80 CCD (2), 80D, 80G and 80 TTA/TTB. Kaushik says, “It is important to fully use these options to reduce tax liabilities based on current financial needs and future goals. Taking advice from tax experts can make tax planning strategies further improved, which we call tax 2 welfare. Understanding and providing clear decisions to make information informing home with personal financial conditions.