Hi, I am working in an IT company, and while declaring my 2020 investments, I had select a new regime. Now my company is deducting tax every month and once deducted tax on variable pay as non-recurring tax. My CTC is 5.6lpa, and in a new regime, I am not getting any benefit of declaring life insurance, PPF, and health insurance instead that I am facing loss with tax deduction every month due to a new regime. Kindly suggest how can I avoid this and is there any way to claim this unnecessary deduction or moving to the old regime.
- As your package is 5.6 lpa, it is better to avail the old scheme. You don't need to invest for tax benefit as there is a standard deduction of Rs.50k and assuming company also deduct PF which brings your salary less than Rs.5 lacs, making you eligible for rebate and no tax thereon.
- Please write application to the company HR and change your option to old scheme.
Hi
You may ask your company for the change. You may opt for old tax regime till the return is filed.
Hello,
Ae per your salary details, the old regime would be better for you. You should ask your employer to change the criteria.
I hope this answer satisfies your requirements. For further understanding, you can contact us directly at or take a phone consultation.
Regards,
CA Hunny Badlani
No.
As per circular by income tax department once you have chosen a regime you can't go back to another regime.
In new regime you can't take benefit of any deduction i.e. ppf lic etc.
However when you file your return of income you can claim it's refund by changing your regime.
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Thank you
Dear sir
as per income tax provision once you opt for the new scheme you can’t opt out for it
Since your CTC is Rs 5.6 lakhs, it would be better to opt for old scheme because you will get benefit of standard deduction of Rs 50000 & other section 80c benefits as well.
u can ask your company to change it because for fy 2020-21 they haven’t filed the Tds return so your information about opting for new scheme is not with department.
please rate 5 & provide valuable feedback so that I can improve my answer in future
You can inform the company that you would like to switch to old regime. From next month they can start deducting tax under old regime itself.
As per the new regime you will not get get deduction for 80C investment. You can request to your employer accept the change request. Otherwise the other option is to file the return with old option and get the refund.
Dear Sir,
Hope you are doing well !!
In your case, old regime is more beneficial.
You can request to your employer to change the same.
Hi, Thanks for the quick response. I have some doubts because I got a mixed response. 1) Can I change to the old regime as I have selected the new one FY 2020-21 by requesting my employer if yes, then when and how can I get a refund of the amount which has already deducted under the new regime? 2) If it is not allowed to go back to the new regime this year, then can I get a refund of all amounts that will deduct during FY 2020-21 in the next year 2021 after switching back to the old system? If yes, then what should be the process. 3) What if I change my company this year, then do I have an option to go for the old regime or should I wait for next year. Regards Rohit
1. You can request employer to shift to the old regime and then extra TDS deducted will be adjusted with next month tax liability.
2. In that case while filling the return. You can opt for new regime and get the refund. But 1st option is advisable.
Sir as far as TDS to be deducted by company is concerned you cannot change the regime now with employer.
However while filing your return of income you can change the regime and claim refund if any.
If you change job then the whole process will be done again and there you can choose whichever regime you want.
If you need any particular detailed assistance feel free to have a phone consultation.
Dear Sir
1. u can get refund of the Tds amount deducted by employer at the time of filing of ITR of FY 2020-21.
plus if your employer does not agree with it then as per CBDT circular once the regime is opted by an individual at the start of the financial year, then such option cannot be changed during the financial year. However, as per the circular, the option can be changed at the time of filing of income tax return.
2.No if u so the above then there is no need for taking refund in next year.
please rate 5 & provide valuable feedback so that I can improve my answer in future
1) Once the intimation is given to the employer, it can not be modified. You can change the option at the time of filing of the ITR and claim refund if excess TDS is deducted.
2) You can modify the intimation next year.
3) You can modify the intimation as the employer will change.
4) Assuming you don't have business income.
Intimation to the employer is for TDS purpose which can not be modified once given. You can change the option at the time of filing of the ITR.
Hi,
1. You can select whatever regime you want to select at the time of filing of return. You will get refund post filing the return.
2. its allowed.
3. You have an option to change the regime.
You can claim the old regime benefits while filing the income tax return and claim the due refund of excess TDS deducted.
The new employer would provide you an option to select between the old and new regimes again.
1. Yes. you can change the same while filing ITR.
2.Yes.
3.You have an option to change the same.