How often to switch between new tax regime and old tax regime?

The Modi government had given a big relief to the tax payers during the inflationary period. People with income less than seven lakhs have been kept out of the tax ambit. But, this benefit will only go to those opting for the new tax system. Save money through various schemes on the old tax system.

Suppose now your income is around 7 lakhs. So if you choose the new tax system to be tax free this year, can you switch to the old tax system if your income increases next year? If such a question is lurking, its answer has also come.

A new tax system has been implemented in the country from April 1, 2020. But, in this system, insurance, tuition fee, tax cannot be saved through investment. Due to this, most of the people have already invested and have opted for the old system.

The new tax system is beneficial for high income earners. But, it is inconvenient for people from lower income group. Since there are two systems and two different rules, now if we switch to the new system, can we choose the old system again? If so, how many times?

Taxpayers can move from old tax slab to new slab as well as back from new slab to old slab. But this exemption is not for all taxpayers. Only employed taxpayers can change the tax slab every financial year. Including from salary, rent or other sources.

Taxpayers deriving income from business will have only one opportunity to choose the new or old regime. Shopkeepers, business people will be able to change the slab only once.