Old regime or new regime
This query is : Resolved
22 March 2024
I have income of Rs 2 lakhs as business income from intraday trading and Rs 15 lakhs from short term capital gains from share trading. Should I opt for old regime or new regime for the financial year 2023-24?
23 March 2024
Opt for new regime...
...
...
23 March 2024
How will new regime be beneficial as I will not be able to claim any deduction
23 March 2024
Fill ITR under two regime and check which is beneficial.
In case of business switch over not allowed more than once.
In case of business switch over not allowed more than once.
23 March 2024
Using 80 c deduction I have to pay 22000 less tax in old regime. Is there any drawback to convert to old regime?
23 March 2024
Only once allowed such conversion.
24 March 2024
I have income from intraday trading under business head.If I opt for old regime for the current financial year I.e 2023-24, will old regime continue to be my default tax regime for the next financial year 2024-25 or will it be changed back to new regime?
Can I change to new regime in future years?
Can I change to new regime in future years?
24 March 2024
If You filed your previous ITR under old regime then You can continue the same in FY 23-24. No issues. Also if required then You can change the regime in FY 24-25.
30 July 2024
Ay24-25On uploading json ITR 3 in income tax login successful validation message but getting error message "In Schedule OS dividendincome cannot be more than dividend income reduced from Schedule BP;Kindly ensure that dividend income in schedule OS is equal to dividend reduced in Schedule BP.You will be allowed to upload return there is possible defect present in return "I have intraday income no account cases and capital gain on shares and dividend income in income from other sources.please help
13 August 2025
1️⃣ Old Regime vs New Regime — Which to choose?
Your income sources:
Business income (Intraday trading): ₹2 lakhs
Short-term capital gains (STCG) from shares: ₹15 lakhs
Key points:
Old Regime: Allows claiming deductions (like 80C, 80D, etc.), but tax slabs are higher.
New Regime: Lower tax slabs but no deductions/exemptions allowed (except few like NPS, EPF employer contribution, etc.)
Calculation example for FY 23-24 (AY 24-25):
Income Head Amount (₹) Tax under Old Regime Tax under New Regime
Business income (₹2L) 2,00,000 Tax slab applicable Tax slab applicable
STCG on shares (₹15L) 15,00,000 Flat 15% + surcharge Flat 15% + surcharge
STCG on listed shares is taxed at 15% regardless of regime.
Business income is taxed as per slabs.
Your deduction claim example:
If you claim ₹1.5 lakh under Section 80C, you reduce taxable income under old regime.
You estimated savings of ₹22,000 tax using 80C in old regime.
Drawbacks and flexibility:
Switching between regimes:
For business income, you can switch every year.
For salaried income, switch is allowed only once after opting out of old regime.
So for your case, you can opt old regime now and move back to new regime next year if beneficial.
Summary:
Since you have significant deductions (like 80C), old regime might be better this year.
STCG will be taxed at 15% anyway, so tax on that remains same in both regimes.
You can file both ways in the income tax software (compute tax for old and new regime) to see which is beneficial.
For business income, you have the flexibility to change regime each year.
2️⃣ Regarding ITR upload error:
Error:
In Schedule OS dividend income cannot be more than dividend income reduced from Schedule BP; Kindly ensure that dividend income in Schedule OS is equal to dividend reduced in Schedule BP.
What this means:
In Schedule BP (Business & Profession), if you have reported dividend income, you must reduce the same amount from Schedule OS (Other Sources) to avoid duplication.
Or vice versa.
Your situation:
You have:
Intraday income (business head)
Capital gains on shares
Dividend income under other sources
Fix:
Check where dividend income is reported — if it's part of business income (Schedule BP), it should not be reported again under Schedule OS.
Usually, dividend income is reported under Schedule OS.
If your intraday trading income is shown in Schedule BP, but dividend income is also booked in Schedule BP mistakenly, then dividend income must be reduced from Schedule OS.
Make sure dividend income is reported only once in the correct schedule.
Steps to correct:
Open your ITR form.
Check Schedule BP for any dividend income entries and remove if not applicable.
Ensure dividend income is only reported in Schedule OS under "Income from other sources."
Make sure in Schedule BP, any dividend income is matched and reduced from Schedule OS.
Re-generate the JSON and upload again.
Your income sources:
Business income (Intraday trading): ₹2 lakhs
Short-term capital gains (STCG) from shares: ₹15 lakhs
Key points:
Old Regime: Allows claiming deductions (like 80C, 80D, etc.), but tax slabs are higher.
New Regime: Lower tax slabs but no deductions/exemptions allowed (except few like NPS, EPF employer contribution, etc.)
Calculation example for FY 23-24 (AY 24-25):
Income Head Amount (₹) Tax under Old Regime Tax under New Regime
Business income (₹2L) 2,00,000 Tax slab applicable Tax slab applicable
STCG on shares (₹15L) 15,00,000 Flat 15% + surcharge Flat 15% + surcharge
STCG on listed shares is taxed at 15% regardless of regime.
Business income is taxed as per slabs.
Your deduction claim example:
If you claim ₹1.5 lakh under Section 80C, you reduce taxable income under old regime.
You estimated savings of ₹22,000 tax using 80C in old regime.
Drawbacks and flexibility:
Switching between regimes:
For business income, you can switch every year.
For salaried income, switch is allowed only once after opting out of old regime.
So for your case, you can opt old regime now and move back to new regime next year if beneficial.
Summary:
Since you have significant deductions (like 80C), old regime might be better this year.
STCG will be taxed at 15% anyway, so tax on that remains same in both regimes.
You can file both ways in the income tax software (compute tax for old and new regime) to see which is beneficial.
For business income, you have the flexibility to change regime each year.
2️⃣ Regarding ITR upload error:
Error:
In Schedule OS dividend income cannot be more than dividend income reduced from Schedule BP; Kindly ensure that dividend income in Schedule OS is equal to dividend reduced in Schedule BP.
What this means:
In Schedule BP (Business & Profession), if you have reported dividend income, you must reduce the same amount from Schedule OS (Other Sources) to avoid duplication.
Or vice versa.
Your situation:
You have:
Intraday income (business head)
Capital gains on shares
Dividend income under other sources
Fix:
Check where dividend income is reported — if it's part of business income (Schedule BP), it should not be reported again under Schedule OS.
Usually, dividend income is reported under Schedule OS.
If your intraday trading income is shown in Schedule BP, but dividend income is also booked in Schedule BP mistakenly, then dividend income must be reduced from Schedule OS.
Make sure dividend income is reported only once in the correct schedule.
Steps to correct:
Open your ITR form.
Check Schedule BP for any dividend income entries and remove if not applicable.
Ensure dividend income is only reported in Schedule OS under "Income from other sources."
Make sure in Schedule BP, any dividend income is matched and reduced from Schedule OS.
Re-generate the JSON and upload again.
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