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Under the new tax regime, individuals with annual income up to Rs 7 lakh can avail a rebate under Section 87A, meaning they won’t have to pay any tax.

The new tax regime also offers a higher standard deduction. Last year, it was raised from Rs 50,000 to Rs 75,000 for salaried employees. In the old regime, the standard deduction remains at Rs 50,000.

The highest tax rate of 30 percent kicks in when annual income is more than ₹15 lakh in the new tax regime. Additionally, tax payers are entitled to claim a higher standard deduction as well.

However, there’s a crucial caveat. This flexibility to change regimes is only available if the ITR is filed on or before the due date. If a taxpayer files a belated return—after the deadline—the ITR will be filed only under the new tax regime. The income tax portal will not allow a switch to the old regime in such cases.

Under the new income tax regime, taxpayers can now avail of a standard deduction of up to Rs 75,000, which makes an annual income of up to Rs 12.75 lakh tax-free. This deduction brings a significant relief for many taxpayers, as it reduces the taxable income further.

The Income Tax Department is expected to soon release the online ITR forms, which will officially open the e-filing process. Usually, the Central Board of Direct Taxes (CBDT) announces these forms in the early months of the financial year, and this year they are likely to be available by April.