Skip to main content

How Can I Opt for OTR If My Employer Choose NTR? Find Out

Image
By Arpit Kulshrestha
How Can I Opt for OTR If My Employer Has Opted for NTR on My Behalf?
Taxpayers are confused often about choosing an effective income tax regime. For a specific fiscal year income tax department permits the person to choose their preferred income tax regime with the frequency of switches allowed based on the person's profession or particular criteria specified in the tax norms.

The two tax regimes are available old tax regime and the new tax regime. Following the union budget 2023, the new tax regime acts as the default option. While submitting proofs and tax return filing the taxpayers should signify their chosen tax regime. 

Switching B/W New and Old Tax Regimes

If you are keen on tax saving instruments though realize that you are not able to claim the deductions for them as of not notifying your employer of choosing from the old tax regime then there is a solution.

Switching between the Old Regime and the New Regime is feasible for the persons permitting their annual tax regime to alternate between the older and the new regimes if specific conditions are fulfilled. Through your occupation or certain criteria mentioned in the tax norms, the number of switches is permitted. It directed that if you are a salaried taxpayer then you could perform the same every fiscal year whereas a self-employed could revise the same merely once in a lifetime. 

What is the Time Limit to Revise Your Tax Regime?

Section 115BAC of the Income-tax Act, 1961, related to the New Tax Regime which permits the person to choose their desired tax regime each fiscal year given that they do not secure the income from business. People on ITR filing have the choice to opt for the tax regime under which they wish their income computed for that specific fiscal year.

Salaried people and business professionals could decide between the old and new tax regimes yearly. The person who does not come under such a class is restricted to switching between the old and new regimes only once in their lifetime.

A salaried person who has the choice to switch between the new and old tax regimes every year allowing them to align their tax strategy with their fiscal circumstances.

Taxpayers on ITR filing can easily switch their desired tax regime who have opted for the new TDS regime for the whole year. Alterations have been made by the  Central Board of Direct Taxes (CBDT) for the income tax return forms for the AY 2024-25. The taxpayers in ITR Form 1, are provided with the option to choose their desired tax regime allowing them the authority over their tax liability.

New Tax Regime (NTR)

For the financial year 2024-25, the person who desires to opt out of the new tax regime should finish a separate form including choosing the old regime option on their tax return forms. Unable to perform the same may consequence in the tax calculation being processed under the new regime feasibly directing tax outcomes that are not being intended. Taxpayers must comply with such norms to ensure precise tax computation. 

Form 10-IE

Only once the person is permitted to alter tax regimes who have a business or professional income. If a self-employed taxpayer opts to switch to the new tax regime then they may revert to the old regime merely once in their life.

These taxpayers to perform the transition between the tax regimes should submit Form 10-IE including their ITR. Unable to submit Form 10-IE via the original ITR filing due date will prevent them from switching back to the old regime for that specific year.

Form 10-IE must be submitted before ITR filing. A 15-digit acknowledgement number submission will be furnished. The taxpayers need to comprise the same acknowledgement number during ITR filing under the new tax regime. 

Selecting the Correct Tax Regime

Opting for a precise tax regime is an important decision that requires a thorough assessment of your financial situation and goals. As per the income levels, the break-even point at which the two regimes propose comparable benefits differs.


The old regime proposes several deductions and exemptions under categories like 80C, House Rent Allowance (HRA), and Leave Travel Allowance (LTA), which can be beneficial for individuals with eligible expenses. The traditional regime may prove more advantageous if you have investments in tax-saving instruments.

Opposite to that the new regime proposes an easier tax structure though needs financial planning as tax saving investments may not produce as promising consequences.


Comments

Post a Comment

Popular posts from this blog

GST: Assessees Must E-file Their Tax Returns by 30th Nov 2024 to Claim Pending ITC

By Arpit Kulshrestha
If you are a GST-registered assessee you need to consider the due date to avail of any due Input tax credit or revised errors/omissions for the FY 2023-24 is November 30, 2024, via submitting the appropriate GST forms. Missing the due date can produce an outcome of a financial loss as the unclaimed ITC could not be used to offset your output tax obligation. What is the Method to Claim the Due ITC or Revised GST Errors for the FY 2023-24 It was stressed by the tax experts that the GST law specifies the procedure to claim the due ITC via GSTR-3B and amend errors in GSTR-1. Filing GSTR-1: Errors induced in GSTR-1 can be rectified by making amendments in the following GSTR-1 filings. Filing GSTR-3B: Via the GSTR-3B return the obligated ITC can merely be claimed. November 11, 2024, was the due date to submit the GSTR-1, and November 20, 2024, is for GSTR-3B without any penalty. Both the outcomes can be provided till November 30, 2024, as per the late fees. R...
Post a Comment
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
2 comments
Read more