My Form 16 is on the old regime — can I file my return under the new regime?

Yes. If you have only salary/non-business income, your employer's TDS regime does not bind your return. File under whichever regime is better; the tax is recomputed and any excess TDS is refunded.

Can a salaried employee switch between old and new regime every year?

Yes. Salaried and other non-business taxpayers can choose the old or new regime afresh each year at the time of filing. Those with business or professional income can switch to old and back to new only once.

From which year do the revised tax slabs apply?

The revised slabs apply for FY 2025-26 (AY 2026-27) — income earned from 1 April 2025 to 31 March 2026.

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Income Tax · Tax regime

Can I switch between the old and new tax regime each year?

✍️ Answered by EaseValue Advisors · Updated 17 Jul 2026 · 4-min read

Quick answer

If you have only salary/non-business income, you can pick the old or new regime afresh every year when you file — even if your Form 16 used the other regime. If you have business/professional income, you can switch to old and back to new only once.

Salaried / non-business — free choice every year

You may choose the better regime each year at filing. Your employer's TDS regime (what your Form 16 used) does not bind your return — if your employer deducted under the old regime but the new is better for you, simply file under the new regime. The tax is recomputed and any excess TDS is refunded (or shortfall paid).

Business / professional income — one switch only

The new regime is the default. If you have business/professional income and opt for the old regime, you can return to the new regime only once, and then you're locked in. So businesses should decide deliberately (file Form 10-IEA to opt out/in).

Which year do the new slabs apply?

The revised slabs (nil tax up to ₹12 lakh, standard deduction ₹75,000) are for FY 2025-26, i.e. AY 2026-27 — income earned from 1 April 2025 to 31 March 2026. See the slab reckoner and old vs new comparison.

Practical tip

Ask your employer for the regime that suits you so TDS is right — but remember you can always correct the choice at filing. Compare both every year; large HRA + 80C + home-loan interest can still make the old regime win.

General information based on the Income-tax Act as it stands, not advice on your specific case. Tax outcomes depend on your exact facts and residential status. © EaseValue Advisors LLP.

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