Paid income tax under new regime, but old regime shows zero tax liability—can I revise ITR and switch regime now for FY25

Under the current system, the new tax regime is the default.

A taxpayer filed ITR under the new tax regime and paid tax. Later, on recalculating under the old regime, the liability came to zero. The Ask Wallet-Wise question is can the return now be revised to switch regimes?

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Whether I can revise the already filed ITR in the new tax regime for AY 2025-26 with a tax payment of Rs 10,500 and file a revised ITR in the old tax regime for the same AY where no income tax is payable? I have checked the tax calculations under the old regime now and found my tax liability to be zero. Please advise.

Expert’s Reply: Under the current system, the new tax regime is the default. A taxpayer need not do anything to opt for it. However, to opt for the old regime, one must explicitly exercise the option.

If you have business income you must file Form 10IEA by the due date to opt out of the new regime. Once you choose the old regime, you must continue with it, unless you no longer have business income. Taxpayers with business income are allowed to switch back only once.

If you do not have business income you can choose the old regime directly while filing your ITR. No separate form is required. But you must exercise this option before the due date of filing the ITR. If you miss the deadline, you cannot switch to the old regime in either the original or revised ITR. For AY 2025-26, the due date has been extended to 15th September 2025.

A taxpayer can file a revised ITR multiple times up to December 31st of the assessment year to correct mistakes or omissions. Since the due date has not yet passed, you can revise your ITR and opt for the old tax regime even though your original filing was under the new regime.

However, if you have business income, remember that Form 10IEA will be mandatory, and you cannot freely toggle between regimes every year.

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