ITR Filing FY25: Can I Switch to the Old Income Tax Regime While Filing ITR?

The old income tax regime allows taxpayers to claim a range of exemptions and deductions under various sections, such as Section 80C for investments, Section 80D for health insurance premiums, and interest on housing loans under Section 24. This regime is typically more beneficial for those who have significant deductible expenses or investments. It provides flexibility to reduce taxable income through planned financial activities.

The New Default Tax Regime and Switching Rules

Since its introduction, the new tax regime has been set as the default option by the Income Tax Department. It offers lower slab rates but removes the majority of exemptions and deductions available under the old regime. If a taxpayer does not explicitly choose their regime at the time of filing, their taxes are computed under the new regime by default.

Fortunately, individuals not having income from business or profession are permitted to choose their preferred tax regime every assessment year. However, those who do have income from business or profession can switch between regimes only once in their lifetime.

Read More: ITR Filing 2025: A Step-by-Step Guide to Using the ‘e-Pay Tax’ Feature!

Can I Change My Tax Regime While Filing ITR?

Yes, individuals can change their tax regime at the time of filing their income tax return. The process is straightforward, but it varies depending on the ITR form you are using.

For ITR 1 and ITR 2

These forms include a direct question:
“Do you wish to exercise the option u/s 115BAC(6) of opting out of the new tax regime (default is ‘No’)?”

• Selecting ‘Yes’ means you are choosing the old tax regime.

• Selecting ‘No’ means you are continuing with the new tax regime.

This feature makes regime selection user-friendly for salaried individuals and pensioners.

For ITR 3 and ITR 4

Taxpayers using these forms—typically those with income from business or profession—must complete and submit Form 10-IEA to change from the default (new) tax regime to the old tax regime.

• Form 10-IEA must be filed on or before the due date of filing your ITR.

• Failing to do so will result in tax calculation under the new regime by default.

Conclusion 

While the option to switch between tax regimes exists, the ability to do so is conditional based on the nature of your income and the ITR form applicable to you. Understanding these requirements ensures you select the regime that best aligns with your financial profile, all within the permissible timelines and compliance frameworks of the Income Tax Act.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.