After the declaration for the finance ministry about the new tax regime, every taxpayer is confused. Whether one needs to fill the Form 10IE or not has become a tricky problem to solve. In the latest changes, a taxpayer must declare their choice to pay taxes through the new regime.
Are you opting for the new tax regime? Here’s how you need to go about it!
In the old regime, the taxes were based on different income categories taxpayers qualified under. The tax slabs for each individual were considered after considering the sum for deductions in chapter VIA, i.e. Section 80 in the Income Tax Act. The deductibles also include benefits comprising HRA, LTA, and more.
The income bracket for taxpayers includes the slabs:
Introducing a new tax regimedate takes away the benefits of the older tax regime. For instance, the benefits and deduction provisions are not aplicable if you opt for the new regime.
In the new regime, the tax slabs comprise the following income ranges:
To opt for the new tax regime, a taxpayer has to fill the Form 10IE and send it to the Income Tax Department. Taxpayers with business income must submit the form by 31 Julyst, as per the government's man, before filing the ITR submissions.
Salaried individuals need to submit the form before or at the time of ITR filing.
To fill the Form 10IE, you need to:
It's a wise decision to research thoroughly before filing taxes. If you want to know all about the question, 'Are you an option for the new tax regime?', following the notifications of the IT department is crucial. By assessing your current tax responsibility, you can switch to the new regime easily.
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You can opt for the new tax regime after considering your source of income. Once decided, you need to fill out Form 10IE to declare your preference for the new regime.
You should opt for the new tax regime if your income is above INR 3 lakhs with deductions only under 80C of the IT Act. If you want to switch, you must declare it during the ITR filing as a salaried individual.