5 points to consider before switching to new tax regime

 Budget 2023 has made the new tax regime attractive. The government expects two thirds of all taxpayers to opt for it. ET Wealth tells you how to make an informed decision.

1.Business income will mean additional compliances

Tax laws consider trading in derivatives and commodities, freelance work, income from YouTube or any other content publishing platform, among others, as business income. So if you are a salaried taxpayer who also has a business income, you need to show that separately while filing ITR 3 or 4. If you want to switch to the new tax regime, a declaration to the effect has to be given in Form 10IE. 

Even though Budget 2023 has made the new tax regime the default one, it is applicable from 1 April onwards. Therefore, the old tax regime is the default option for the current financial year. Sujit Bangar, Founder, Tax Buddy, says once taxpayers who have business income make the declaration in Form 10IE, it would be applicable for subsequent assessment years as well. “If the taxpayer with a business income is sure of migrating to the new tax regime, he should file ITR 3 or 4 and give Form 10IE while filing his return for 2022-23,” he adds.

Source link:- https://economictimes.indiatimes.com/wealth/tax/5-points-to-consider-before-switching-to-new-tax-regime/articleshow/97820012.cms

Website link:- https://www.taxbuddy.com/




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