I opted for old tax regime in FY 2024-25 on ₹7.5 lakh salary. Can I get refund under new regime?

Today we have a question from Vignesh R, whose salary income is not more than ₹7.5 lakh. At the start of the Financial year 2024-25 (AY 2025-26), Vignesh had opted for the old tax regime before his employer. However, he has not submitted any investment proof to his employer till now.

As the current financial year comes closer to its end on March 31, Vignesh wants to know whether he can change his tax regime now. Also, can he claim a refund while filing his income-tax return as his salary income is less than ₹7.5 lakh?

Following is the full question that Vignesh sent to us via email:

Following is the part-by-part answer to Vignesh’s queries:

1. Yes, you can change your tax regime. But not now.

Salaried employees can change their tax regimes at the time of filing their income tax return. They can switch from one regime to another every year.

2. You won't have to pay any tax for FY 2024-25 as your income is less than ₹7.75 lakh

Under the new tax regime, salaried employees have to pay nil tax if their total taxable salary is up to ₹7.75 lakh. This is applicable for the current financial year (FY 2024-25), which is assessment year 2025-26.

3. If your employer has deducted taxes under the old regime during the financial year, you will be able to claim a refund by opting for the new tax regime.