I’m a salaried individual and do India and US equity in the side.
My tax liability is similar in both tax regimes assuming I consider all deductions and exemptions.
Which income tax regime should I chose and if I chose new regime, will I be able to go back to old regime in future?
And which form do I use as I hold US equity and also have dividend income from them.
Thanks in advance
Hey @Jab,
For income from capital gains (from both domestic and foreign equity) ITR-2 needs to be filed. In case you also do F/O or intraday trading which classifies as business income, you’d have to file ITR-3.
With regards to the regime, you can choose whichever is more beneficial to you. You can switch between the regimes every year.
However, if you have business/profession income, you can switch the regimes only once.
Hope this clarifies your query.
@Jab
Hi,
You can select whichever regime suits you as the tax liability is almost similar.
However, as you have US equity along with the dividend income and salary income, in your case, ITR 2 will be applicable along with the reporting of US equity and income in the ITR.
Also kindly note that if you have received form 1042S for the TDS deducted on dividend income then you can claim it through Form 67 before filing the ITR.
Regards,
Aditya