Changing Tax Regime While Filing ITR: Step-by-Step Guide, Forms to Use, and Key Deadlines

The last date for filing Income Tax Returns (ITR) for non-audit cases has been extended from July 31, 2025, to September 15, 2025. The extension was granted by the Central Board of Direct Taxes (CBDT) because of multiple updates in the ITR forms this year. One of the most important changes allows taxpayers to switch between the old and new tax regimes while filing their return.

If you do not select a regime, your ITR will automatically be processed under the new tax regime by default. However, the option to shift from the new regime to the old one exists at the time of filing. Here’s a detailed guide on how to do it, along with who needs to file which ITR form.

Who Should File Which ITR Form? ITR-1 (Sahaj)

This form is meant for individuals with an annual income below ₹50 lakh. It applies to salaried individuals, those with a single house property, or income from interest. However, if you have capital gains (such as from selling shares or property) or income from business, this form cannot be used.

ITR-2

This form is applicable to individuals who have income from capital gains, multiple house properties, or foreign assets. If you earn income from business or profession, you cannot use ITR-2.

ITR-3

This form is designed for taxpayers whose primary source of income is from business or professional activities. If you are a partner in a firm, you are also required to file ITR-3.

ITR-4 (Sugam)

This form applies to individuals, Hindu Undivided Families (HUFs), or firms (excluding LLPs) with income up to ₹50 lakh under the presumptive taxation scheme (Sections 44AD, 44ADA, 44AE).

How to Switch Tax Regimes While Filing ITR For ITR-1 and ITR-2

If you are filing ITR-1 or ITR-2 and have no business or professional income, you can easily switch your tax regime. The ITR form will ask whether you want to opt out of the new tax regime under Section 115BAC(6).

• If you select Yes, your tax will be calculated under the old regime.

• If you select No, your return will remain under the new regime.

For ITR-3 and ITR-4

For taxpayers filing ITR-3 or ITR-4, the rules are stricter. You are allowed to switch to the new regime only once in your lifetime. Once you move to the new tax regime, you cannot go back to the old one. To opt for the new regime, you must submit Form 10-IEA.

How to File Form 10-IEA

Form 10-IEA is mandatory for individuals with business or professional income who want to opt for the new tax regime. It must be submitted within the due date under Section 139(1).

Follow these steps:

Visit the Income Tax e-filing portal and log in using your PAN and password.

Go to the e-File section and select Income Tax Forms.

Choose Form 10-IEA.

Accurately fill in details related to your income, deductions, and exemptions.

Submit the form and complete the process through e-Verification.

Key Takeaway

With the deadline extended to September 15, 2025, taxpayers have more time to carefully select the right tax regime and file the correct ITR form. Salaried individuals with simple income sources can easily toggle between regimes while filing, but business and professional taxpayers must take extra care, as their regime choice is largely irreversible. Filing the correct form and making timely decisions can help you maximize tax benefits while staying compliant with income tax rules.