New tax regime is default for ITR filing 2025
Tax season for 2025 is approaching, and individuals need to decide between the old and new income tax regimes. Choosing the right option can affect how much tax you pay. In 2025, the new tax regime is the default choice. If you do not select the old tax system, your tax will automatically be calculated using the new rules. However, there are different rules depending on how you earn your income. For salaried employees, switching between tax regimes is flexible. You can choose the old tax regime if you prefer, as long as you do so before filing your Income Tax Return (ITR). It’s important to remember that this option is available only if you file on time. Business owners and professionals face more restrictions. Once they switch to the new tax regime, they can only revert to the old regime once. To do this, they must fill out a specific form before filing their ITR. Key deadlines to keep in mind include July 31, 2025, for regular ITR filing and December 31, 2025, for belated returns, which may incur a late fee. Before making a decision, taxpayers should compare the benefits of each tax regime. The old tax regime offers more deductions, while the new regime provides lower tax rates but fewer deductions. Evaluating your situation can lead to better savings.