ITR
Old tax regime for traders
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Facts
Individuals with business income, including F&O, must file Form 10-IEA by the due date to opt out of the default new regime. A trader can switch back to the new regime only once after opting out.
Provisions and law
- Sec 115BAC (now Sec 202)New regime as default and opting out for business income
Analysis
If you have home loan interest of ₹2,00,000 and 80C of ₹1,50,000, the old regime may be better. Compute both. If you missed Form 10-IEA by the due date, the new regime applies for that year. Think about the long term, since the switch back is a one-time choice for business filers.
Conclusion
- Compute tax under both regimes
- File Form 10-IEA before the due date if old is better
- Quote the acknowledgement in ITR-3
- Note that switching back is allowed only once
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