I am a self-employed professional giving technical expertise as a consultant. I file returns using section 44ADA and declare 50 per cent of my income for tax. Is it true that a switch from old to new tax regime is allowed only once in the case of self-employed professionals?

Babu Mahesh

Yes, individual taxpayers with business income can opt for the new income tax regime and will have a one-time chance to return to the old tax regime.  However, such taxpayers will not be permitted back to the new income tax regime in future fiscal years. 

I am 63 years old. My income consists of the following: Pension of ₹3 lakh; Rent of ₹1.2 lakh and interest and dividend to the tune of ₹1.5 lakh, plus short-term capital gains from shares.

Hitherto, I have been filing under the old scheme. Will it be more advantageous if I opt for the new regime so that I need not invest to take advantage of the 80 C deductions? The tax liability will be nil. Am I correct?

Sujatha Rajagopal

Yes. The new regime is beneficial if the total income is ₹7 lakh or less. Assuming your capital gains are negligible, your total income reduced by standard deduction of ₹50,000 will be within ₹7 lakh. Hence, you can opt for new tax regime. As a result, there is no need to invest to take deduction under Section 80C.