The New Tax Regime was adopted by the Finance Ministry in the Finance Act 2020. So, an individual can now choose to file their taxes under the Old Regime or the New Regime.
The difference between the Old & New Regimes is:
- You can claim deductions, set off, and carry forward losses under the old regime.
- You cannot claim most Chapter VI A deductions and carry forward losses under the new regime. However, you can take benefit of lower slab rates.
Form 10IE must be filed whenever you want to opt-in or opt-out of the new regime and make sure, you file before the due date to avail the benefits of it.
Steps to Opt-In/Opt-Out of New Regime:
- In the Filing tab, navigate to E-file
- Tap on Compare Regime > Change Regime
- Choose a Regime
- Add required details as per the regime chosen
- Acknowledgment Number
- Filed date of Form 10IE
- Tap on Save
Read more on New Regime