Archive · 31 Jul 2026
Taxpayers Can Switch Regimes at Filing, But With Limits
Imagine you have two ways to pay taxes: one with many discounts and one with simpler rules.
If you work a regular job, you can pick either way when you file your tax form, even if your boss chose a different way for your paycheck.
But if you run a business, you have to decide carefully because you can only change back once.
You need to look at how much money you can save with each way before you file.
The deadline to file is July 31, 2026.
If you choose the simpler way, you lose some discounts.
If you choose the discount way, you keep them but pay higher rates.
It's important to compare both options and maybe ask a tax expert.
Salaried taxpayers can choose old or new tax regime when filing ITR, regardless of employer's TDS choice.
Business or professional taxpayers have limited flexibility; they can switch back to the new regime only once after choosing the old regime.
The final regime choice must be made before the ITR due date (July 31, 2026 for AY 2026-27).
Taxpayers should compare deductions, exemptions, and tax rates under both regimes before filing.
Switching back to the old regime after opting for the new one is restricted for business taxpayers, while salaried taxpayers enjoy annual flexibility.
- Who
- Taxpayers filing Income Tax Return for AY 2026-27, including salaried and business professionals
- What
- Ability to choose between old and new tax regimes at filing, with restrictions on switching for business taxpayers
- When
- Deadline July 31, 2026 for filing ITR-1/ITR-2
- Where
- India
- Why
- To allow taxpayers to select the regime that results in lower tax liability while preventing frequent regime changes
- Tax Regime Flexibility
- Salaried taxpayers can switch annually; business taxpayers limited to one switch back
- Filing Deadline
- July 31, 2026 for AY 2026-27
- Applicable Forms
- ITR-1 or ITR-2 for non-audit cases
- Key Restrictions
- Business taxpayers can switch back to new regime only once after choosing old regime
- Tax Expert
- CA Chandni Anandan, ClearTax