The new tax regime has been made the default tax regime from the current financial year. Earlier, while salaried individuals had the option to switch back to the old tax regime, this option was not available to professionals and individuals with income from business, once they made a switch.
According to the CBDT notification, people wanting to opt for the old tax regime will have to first file a specific form before filing a return.
“The option to select the old tax regime would be made in Form No. 10-IEA, which should be filed on or before furnishing the return of income,” Akhil Chandna, partner, tax, Grant Thornton Bharat, said.
The CBDT has also expanded the scope of applicability of new tax regime covering individuals, Hindu undivided family, association of persons (other than a co-operative society), or body of individuals (whether incorporated or not) or an artificial juridical person.
The board has also notified certain allowances and perquisites, including meal coupons and allowance towards helpers, uniform, and for academic pursuits that will be taxable in the new regime.