3 years back, I moved to the new regime by filing Form 10IE and this year I moved back to the old regime by again submitting the Form 10IE.
From the next year, the new regime will be the default tax regime.
Will I be able to switch back to the new regime next year automatically as it is the default regime?
There was a rule that we can switch back to the old regime only once if we move to the new regime which I have already done.
Is that rule still applicable after the new regime being the default regime next year?
The rule for switching only once in a lifetime is when you have income from business & profession (B&P) by filing form 10IE. If you don’t have B&P income, you can switch regimes every financial year.
However, the ITD has not issued any clarification in this regard yet.
@Quicko important question. i am salaried but i have ITR3 this year because of an accidental intraday trade. I am being made to fill form 10IE to switch back to old regime. This form has a lifetime limit. If i want to file ONLY ITR2 next year onwards, can I switch multiple times between the regimes in different years without filling this form? assuming there is no PGBP for me in future
@Quicko
Salaried employee earning fixed income from employer along with trading income (intraday, options) submitting ITR-3 fall under the category “Business income taxpayers” when choosing between new and old tax regime?
If yes, once such individual opt out of new tax regime and move to old regime,
they have only one time option to get back to new regime, after which they cannot move to old regime at all ?
Yes, a salaried individual with trading income (like intraday or options) filing ITR-3 is treated as having business income for tax purposes. Such taxpayers can opt out of the default new tax regime and switch to the old regime by filing Form 10-IEA before the due date. However, they can switch back to the new regime only once in their lifetime—after that, they cannot move to the old regime again.
