If your business income ceases to exist in the future years, then you have an option to switch back again to the new tax regime as per your convenience every year.
1 Like
I am a salaried individual and while filing ITR I found that Intra-day trading and F&O trading is considered as business income. I am selecting New Regime and I have a few questions:
- It seems the regime cannot be changed for individuals having business income(ref). Does this apply to me as well? What if I stop doing intraday/F&O trading, can I change the regime then in future?
- What will be the āNature of business or professionā in Form 10-IE for me?
1 Like
Hi @swpprj,
Here are answers to your queries.
-
Regime can be changed for individuals having business income (FnO & intraday). Hereās a read for your reference.
Tax on F&O - Futures and Options Trading - Learn by Quicko
A trader having business income and opting for the new tax regime has an option to switch back to the old regime only once. -
You can select Wholesale & Retail Trade > Retail sale of other products in your form 10IE (As shown in the screenshot below)
1 Like
yes. but only salary people can re-enter the scheme again
hence, once out then you are out!
Warm regards
CA Ankit Aggarwal
9999274569
Hi ,
My FNO trading profit is 27L and turnover is 92L.
Can u please suggest if i can opt for presumptive tax ? Please state reason as well for either case.
Thanks
Hi @Kabir_shah
As per section 44AD, any individual, HUF, or Partnership firm (other than LLP), having an annual turnover of up to ā¹2 crores, can declare 6% (for digital transactions) of its turnover or actual profits whichever is higher as taxable income.
You can opt for the presumptive taxation scheme. In your case, the FnO turnover (business income) is less than 2cr, and the profit is 6% (ā¹5,52,000) or actual (ā¹27,00,000) whichever is higher is the taxable income.
Hope this helps.
Hi! I donāt have any other income rather than my salary, and based on the calculations, new regime seems to be better for me. I wanted to ask that can I switch between old and new regime every year?
Also I might do a startup/business around 10 years down the line. In that case, can i do the same switches every year? I have read somewhere that people with business income can only switch back to old regime once. In that case, I am thinking that I will switch back to old regime in the year before starting my startup, so that in the next financial year I will start my startup/business and stay in the old regime, will it work? please advise
As a salaried taxpayer, you have the option to switch tax regimes every year. In the case of business and profession, you can switch only once in a lifetime.
As per your stated situation, yes, you can switch before the business started, then you can stay on it.
Hi,
We used to have benefits of car lease where the lease amount was deducted from pre-tax salary as well as we could claim benefits on car maintenance and fuel charges.
Will these benefits be discontinued under the new regime or can we still take them?
Regards.
Sumit
Hi @Sumit_Singh
You would not be allowed to take benefits on car maintenance, fuel charges and lease amount under the new regime.
Hi @TeamQuicko a question regarding HRA. I recently shifted to a leased accommodation instead of rent and put an agreement of 12 lakhs for 3 years, I believe that Iām still able to claim HRA and I arrive at the annual rent by dividing the entire lease paid by the number of years. So now my annual rent will be 12 lakhs/3 years = 4 lakhs. I asked a finance influencer and they confirmed that this can be done, wanted to get an expert opinion on the same. Please let me know if for leased residential accommodation HRA can be claimed in this manner. 
Thanks
Yes, HRA can be claimed for leased residential accommodation.
The exemptions can be availed only on submission of rent receipts or the rent agreement with the house owner.
1 Like
Is Sodexo exempted under nre tax regime?
Under the new regime, one cannot claim any allowances or perquisites. So, a sodexo is not exempted under the new regime.
Read more about Section 115BAC - Understanding the New Tax Regime - Learn by Quicko.
?hiā¦need clarity on the old and new tax regimes.
i have a salary income and fno income if i have opted for new tax regime they i have only one chance in a lifetime to go back to old regimeā¦ as the business income people can switch only once ? give clarity on itā¦
I am claiming the medical expenses of my parents (>60) in my exemption and not claiming the same while filing my parentsā ITRā¦is it okay to file this way ? or they only need to claim the deduction ?
Hi @Shanmukh
Individuals with business income are not eligible to choose between new and old tax regimes every year. Once they have opted for the new tax regime, they only have a one-time option of switching back to the old tax regime in their lifetime. Once they switch back, they cannot opt for the new tax regime again.
You can claim deductions while filing your ITR for the medical expenses paid for parents if you have paid for the same under the old regime. You can read more about Section 80D: Deduction for Medical Insurance Premium - Learn by Quicko for a better understanding.
Hope this helps.
my doubt is I am salaried and i have FNO income. then i have only one option for switching the tax regime in lifetime as fno is treated as business income even i am salaried.as i file ITR 2
clarify itā¦
Hi @Shanmukh
Since you have FnO income which is a business income, so you will file ITR 3.
Having salary and business income, you can switch regimes once in a lifetime.
Hope this clarifies.
Can the FNO loss from previous year be adjusted with this yearās FNO gain and carry foward the remaining FNO loss to next year in the new tax regime