From AY21-22/FY20-21 taxes can be filed through two regimes: Old regime and New regime. You can read up about old and new regime in this article.
Steps to see Old vs New Regime computation
- Navigate to Review in ITR
- Click on the Old vs New regime computation
- Compare the computations and see the recommended & default regime based on the income situation entered in ITR
Old regime will be the default tax regime.
Steps to opt in to the new regime
As per the ITD guidelines, Form 10IE needs to be filled in case of business income (ITR-3 and ITR-4) to switch to the new regime. Learn more about how Form 10IE can be filed here.
- Click on Review> go to the Old vs New regime page
- Click on the card 'You save Rs xx more under New Regime'
- Select the option 'Opting-in to the new regime' and add the acknowledgment no. and the date of filing of Form 10IE details and click on save
- Your preference for the new tax regime will be saved and stored at the taxpayer level. You will be redirected to the Review > New vs Old Regime screen with the message 'you are under-optimized regime'
- Navigate to Review> Tax Computation- To check the detailed breakdown of the tax regime
Ensure to fill Form 10IE before opting for the new regime. Here is how you can fill Form 10IE from the Income Tax website.
Note: Quicko will show the fields applicable as per the new tax regime in ITR when opted for the new tax regime.