Tax regime switch if i have Salaried income & business income

Income Tax
1

I have a salary income and a business income, I want to know if I can switch between Old & New tax regimes every financial year or if it’s one time only.

I have read if I have business income then I can change it only once, so I need clarity if I can switch or not.

2

Hi @akshay,

If you have income from business, you can only switch the regimes once and not every year.

As the new regime is the default, you’ll have to file form 10-IEA to opt for the old regime. Here’s a detailed thread that can help you further: Form 10IEA for opting into old regime

3

Thanks for the reply.
So, in FY 22-23 i have filed ITR in Old regime, but in FY 23-24 my tax liability was less in New regime, hence the CA filed in new regime. So, suppose in FY 24-25 my tax liability comes less in old regime. What should i do then?

4

Hi @akshay,

The new regime was made default from FY 2023-24 onwards. Now, if you want you can switch to the old regime in FY 2024-25. You’ll have to file form 10-IEA in order to do so. However, then if next year you decide to opt for the new regime again, you’ll not be able to go back to the old regime ever.