Thread by @lakshita_setia

💡5 Points to consider before switching to new tax regime -

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🪙Business income will mean additional compliances

Tax laws consider trading in derivatives and commodities, freelance work, income from YouTube or any other content publishing platform, among others, as business income. So if you are a salaried taxpayer who also has
a business… twitter.com/i/web/status/1…

🪙 Home loan deduction only if
property rented out

Under the new tax regime, a deduction for interest paid on housing loan can be claimed only
if the said house for which the
loan has been taken is rented out.

Also, this deduction is limited to the amount of rent, and if you… twitter.com/i/web/status/1…

🪙Some losses can’t be adjusted or carried forward

Taxpayers resort to loss harvesting to reduce tax liabilities arising from short-term capital gains. Losses are booked on existing investments to offset gains made on other investments to lower the tax outgo.
The loss- making… twitter.com/i/web/status/1…

🪙File ITR by 31 July to switch to new regime for 2022-23

If someone wants to switch to the new tax regime for the financial year 2022- 23, then filing of original income tax return by 31 July 2023 is mandatory.

🪙Non-salaried can switch regimes every year

If you only have a salary income, then you can switch between tax regimes each year.

Non-salaried people can also do that, but only if they do not have any business income since taxpayers with a business income can’t always make the… twitter.com/i/web/status/1…