Income Tax || How to select New Tax Regime

Income Tax || How to select New Tax Regime

Form 10IE To Select New Tax Regime

In Budget 2020, taxpayers were given an option to choose between the old and new tax regime. Under the new tax regime, taxpayers have an option to pay lesser tax on the total income. 
That means taxpayers will not be allowed to claim the deductions and tax benefits otherwise available in the old tax regime if the new tax regime is selected. 
The taxpayer has to make his/her choice before filing the Income Tax Return (ITR) of the relevant Financial Year (FY).

The option to select the new tax regime is only available for Individuals and Hindu Undivided Family (HUF).

As mentioned above, taxpayers have to make their selection before filing the relevant ITR. This selection needs to be communicated to the Income Tax Department before the ITR is filed.

How to inform the IT Department which tax regime is selected?


The Central Board of Direct Taxes (CBDT) has released Form 10-IE. 
Any person who wish to pay income tax as per the new tax regime has to communicate his/her choice to the Income Tax Department through form 10-IE.
In case a taxpayer wants to opt-out of the new tax regime, the same form 10-IE needs to be submitted before filing the income tax returns for the relevant Financial Year (FY).

Contents of Form 10IE


The basic details required to be entered in form 10IE are-

  1. Name of the individual/HUF
  2. Confirmation – Whether the individual/ HUF has any income under the head profit or gains from business or profession
  3. Permanent Account Number (PAN)
  4. Address
  5. Date of Birth/Incorporation (in dd/mm/YYYY format)
  6. Nature of Business/Profession
  7. Confirmation – Whether the taxpayer has any unit in International Financial Services Centre (IFSC), as referred to in sub-section (1A) of section 80LA (if yes, the details have to be provided)
  8. Details of the previous form 10IE filed (If applicable)
  9. Declaration

How to select New Regime in Income Tax Software?


To select New Regime in Income Tax Software Go to Transaction > Filing Information > Form 10IE

             
Same will shown on Computation Screen also.

            

Here, Check Mark on the Applicable Section 115BAC, Date of Filing of Form 10IE and Acknowledgment No. and then Save.

Now check the Computation, Tax calculated according to New Regime.


Hope this helps.

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