The ITD has prescribed rules to opt in/out of the new tax regime. You can refer to the below chart to learn more about the same.
The difference between the Old & New Regimes is:
- You can claim deductions, set off, and carry forward losses under the old regime.
- You cannot claim most Chapter VI A deductions and carry forward losses under the new regime. However, you can take benefit from lower slab rates.
Steps to Opt-In/Opt-Out of New Regime:
- Navigate to profile from the bottom nav
- Scroll down, tap on the tax regime under preferences
- Choose a regime (old/new)
- Enter the required details (if opting in/out new regime or staying with new regime)
- Acknowledgment number
- Filed on date
- Tap on save
Form 10IE must be filed whenever you want to opt-in or opt-out of the new regime and make sure, you file before the due date to avail the benefits of it.