Switching Tax Regimes in 2025: As the last date for filing income tax return comes close on September 15, 2025, many salaried people are asking if they can still change their tax regime while filing. A lot of confusion happens because many declare one choice with their employer, but later want to pick another while submitting their return.
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The old regime gives you many deductions like money you put in provident fund, life insurance premium, home loan principal, HRA, and even travel allowance. These help cut down taxable income, but the tax rates go higher step by step. The new regime, which became default from 2023-24, has lower tax rates but almost no deductions. It is simple and works better for those who don’t have much investment or saving options to claim.
Can you switch regime while filing?
Yes, you can. The law allows every taxpayer to make their final choice at the time of filing. What you told your employer for TDS during the year does not lock you forever. Employers only deduct tax based on the option you gave them, but when you file the ITR you can change it. One tax expert explained that a person can legally switch if they adjust everything properly like deductions and exemptions while filing.
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Old regime vs new regime
People who have bigger incomes and more savings usually gain with the old system because they can claim many deductions like under 80C for investments, 80D for medical insurance, or HRA for rent. These deductions reduce the total income on which tax is charged.
For people with a simple salary and not many investments, the new regime looks easier and sometimes cheaper. It has straight lower tax rates but no scope to claim deductions.
How To Switch The Tax Regime?
- To switch your tax regime while filing your ITR:
- Log in to the income tax e-filing portal.
- Begin filling out the applicable ITR form (ITR 1 or 2 for salaried individuals, ITR 2 if income exceeds ₹50 lakh).
- When prompted, select your preferred tax regime—old or new.
- Fill in all relevant details carefully.
Things taxpayers often do wrong
Many people forget to check both regimes before filing and end up paying more than needed. Some even miss claiming deductions they deserve under the old regime like rent allowance, repayment of education loan, or 80C benefits.
