The process of filing income tax returns for the financial year 2022-23 has commenced, and individuals have already begun filing their returns according to their annual income.
However, this time there is an important factor to keep in mind while filing income tax returns. Let’s shed some light on it.
During the Budget 2023 announcement, Finance Minister Nirmala Sitharaman introduced several changes concerning income tax.
Notably, significant announcements were made regarding the new tax regime. It was stated that the new tax regime would become the default tax regime going forward.
Income Tax Return Considerations
In light of these developments, individuals filing income tax returns need to be mindful of whether they should file under the new tax regime or the old tax regime to avoid potential difficulties due to any mistakes.
Old Tax Regime
If an individual chooses to file their income tax return under the new tax regime, they will not have the option to switch to the old tax regime.
Conversely, if someone files their taxes under the old tax regime, they retain the flexibility to switch to the new tax regime.
It’s important to note that certain tax-saving investments are applicable only under the old tax regime and not under the new tax regime.
Tax Saving Awareness
When filing income tax returns this time, it is crucial to consider which tax regime is most suitable for you. Take into account your income and how you can save on taxes accordingly.
Ensure that you make an informed decision about the tax regime you select for filing your income tax returns to maximize your tax-saving benefits.
