Employees can change Tax REGIM in the mid of the Financial Year? Is it allowed in Income Tax rules ?
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No, you cannot change in middle of Financial Year.
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What if employee have selected mistakenly and then he wants to change it can we do the same with ITR filing process ?
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An employee will have the option to switch the tax regime at the time of filing tax return
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Agree with @Abhi9959
Once the choice of tax regime has been communicated to the employer , the employee cannot change the choice of tax regime during the financial year. However, an employee will have the option to switch the tax regime at the time of filing tax return (ITR)
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One scenario to discuss -If employee joins in mid year and earlier in his organization he have selected old regime so in new organization he needs to follow same regime in new company ?
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Is there any option that employer can allow employee to choose tax regime in mid year, If you chossed wrong tax regime?
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Hey @4536
An employee will have the option to switch the tax regime at the time of filing tax return.
Hope this helps.
Community Manager.
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Is there any possibility for employee to choose Tax regime in the month of May. e.g If employee has choose wrong regime in April and want to change in May ?
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Not as per law. He can change it when filing his IT return .
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Hi - As far as I know I dont think there is an option for the employee to switch to a different regime after completion of the financial year.
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Employee will select the Tax Regime once in the Financial Year. However if an employee was mistakely select the tax regime in Apr’23 and wants to change in May’23 then we can change it. But for this we require the full explanation. Also as per my understanding, in govt notification on Tax Regime, its not mentioned any where how many time employee can select tax regime in financial year. We given option to employee to select tax regime once in FY because its will easy for us to calculate tax for whole FY.
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