Missing the income-tax return (ITR) filing deadline can have consequences beyond late fees. Today's Ask Wallet Wise query explains how if you fail to opt for the old tax regime on time, you may be compelled to file under the new regime even if it results in a higher outgo.
Ask Wallet-Wise initiative offers expert advice on matters related to personal finance and money-related queries. You can email your queries to askwalletwise@nw18.com, and we will try and get a top financial expert to address your queries.
I missed filing my ITR by September 16. Now, I am not able to opt for the old tax regime. If I file under the new tax regime, I have to pay Rs 7,50,000 in tax. Is there a way I can avoid paying such a huge amount in tax?
Expert's Advice: For most taxpayers, July 31 of the year following the financial year is the due date for filing the Income Tax Return (ITR). For the financial year ended March 31, 2025, the deadline was extended to September 16.
Individuals and Hindu Undivided Families (HUFs) have the option to choose between the old tax regime and the new under Section 115BAC of the income-tax act. The new tax regime is the default option. Taxpayers who wish to opt for the old tax regime must proactively exercise this option while filing their ITR on or before the due date, provided they do not have business income.
Taxpayers without business income are allowed to switch freely between the old and new tax regimes from year to year. However, those with business income can switch from the old to the new only once, and once they do so, they cannot revert to the old tax regime as long as they continue to have income under the profits and gains of business or profession head.
Since you did not opt for the old regime by filing your ITR before the due date, you now have no option but to file your return under the new tax regime and pay the tax.
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