InvestorQ : Can I choose my Income Tax regime until June as the due date for investment has been extended?
nishi Shah made post

Can I choose my Income Tax regime until June as the due date for investment has been extended?

Answer
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Anusha Savla answered.
5 months ago


The due date for the financial year ending March 2020 has been extended due to the coronavirus pandemic. This means taxpayers can make an investment for claiming deductions for the FY 2019-20 (AY 2020-21) until June 2020. However, this does not mean that the next financial year would be delayed.

Just like any other year, your employer would ask you to fill the form under which you mention your investment details, salary details, etc. The purpose of this form is to deduct TDS on that basis so that the least tax would be deducted. However, for the FY 2020-21, the taxpayers shall have to choose between the new tax regime and the old tax regime so that their tax liability could be minimized. The option to choose is generally available at the beginning of the financial year but due to this entire pandemic situation it might be delayed. There’s a possibility that employers will ask employees to choose between the two regimes by the end of May payroll.

So, as a salaried individual you should choose your tax regime before the option to choose lapses so that your tax liability would be less. Also, whatever option you choose, once chosen cannot be changed throughout the year except when filing the Income-tax return.

You can choose between the two alternatives by comparing your income under both the alternatives, for that you can take the help of a professional or use the income tax website. E-filing income tax provides taxpayers to compare their income under two regimes. All you have to do is to visit the website e-filing income tax India and go to ‘Tax Calculator 2020-21’ on the left panel, enter the requisite details and your tax liability would be calculated.