Last Updated:
Filing your Income Tax Return (ITR) for 2025? Before you do, it’s crucial to understand whether the old or new tax regime works better for you—because your choice could significantly impact your savings overall tax liability.
Choosing the right tax regime for 2025 can make a significant difference in your savings.
New Vs Old Income Tax Regime: Tax season is back and with it comes the age-old question: Should you stick with the old tax regime or go with the new one? If you’re filing your Income Tax Return (ITR) for the financial year 2024-25, there’s something important to note – the new tax regime is now the default. That means unless you actively choose the old regime, your tax will be calculated based on the new system. But here’s the catch: Your ability to switch between the two depends on how you earn.
Salaried employees have more flexibility, while those with business or professional income have stricter rules to follow. Let’s break it down.
Can You Switch Between Tax Regimes Every Year?
If your income comes from salary, interest, or rent (basically, non-business sources), you can change your tax regime every year. Opted for the new tax regime last year? No problem—you can go back to the old one this time, as long as you do so before filing your ITR. Just remember: The old tax regime is only an option if your return is filed on time.
What About Business and Professional Income Earners?
Things work a little differently for business owners and professionals. If they switch to the new tax regime, they don’t have the luxury of flipping back and forth each year. They can return to the old regime just once—after that, they’re locked in.
As per Budget 2023, anyone choosing the old tax regime must submit Form 10-IEA before filing their ITR to make it official. But salaried individuals and those without business income? They can make a fresh decision each year, as long as they do so before the deadline.
ITR Filing 2025: Key Deadlines To Remember
Regular ITR filing deadline: July 31, 2025 (for FY 2024-25, AY 2025-26)
Belated return deadline: December 31, 2025 (comes with a late fee)
Changed your mind after filing? If you initially picked the wrong tax regime, you can submit a revised return—but only if your original ITR was filed on time.
Old vs New Tax Regime: Which One Saves You More?
Before filing, take a moment to compare your options.
Old Tax Regime (More deductions, fewer benefits on lower slabs)
Section 80C: PPF, EPF, Life Insurance, etc.
Section 80D: Medical Insurance
House Rent Allowance (HRA)
New Tax Regime (Lower tax rates but fewer deductions)
Your choice can significantly affect your tax savings, so crunch the numbers before filing. A little planning today could mean more money in your pocket tomorrow.
