Change of regime

Save Share

This query is : Resolved

Quick Summary

A senior citizen, previously filing under the new tax regime with some F&O gains, now needs to file ITR 2 due to capital gains, dividend, and interest income. They are considering switching to the old tax regime to claim a deduction under Section 80TTA, which would eliminate their tax liability. The query clarifies that rebate under Section 87A is not applicable to long-term capital gains, and switching to the old regime can be done directly within ITR 2 without needing Form 10-IEA.

suren

suren (Querist)

05 August 2025 The assessee who is a non salaried senior citizen has filed ITR 3 in AY 2024-25 as there was a small F & O gain. Barring that there was capital gain and income from dividend and interest under new tax regime. This year he does not have any business income. Hence he has to file ITR 2 for income from Capital Gain and other sources like dividend and interest. His taxable income is around 350000 majorly due to Long Term Capital Gain. If he continue in new regime, he has to pay tax. But if he switches to old regime, there is no tax as he can claim interest income deduction of Rs. 50000/- u/s. 80TTA.
Question is can he claim rebate u/s. 87A for long term capital gain? If not, can he switch to old regime to save tax? If Yes, he has to file form 10-IEA?