Expert answers to crucial personal finance queries. Learn about the tax-free status of importing past NRI bank deposits from Dubai, the specific operational rules for switching to the old tax regime to claim home loan deductions, and why F&O losses cannot offset salary income.
July 3, 2026 23:33 IST
l I worked in Dubai for five years and invested money in bank deposits there. If I transfer the entire money to my India account, what is the tax that I have to pay?—Pramod Rathore
Transferring your accumulated savings from Dubai to an Indian bank account will not attract any income tax in India. Transferring your own past foreign earnings to your home country is considered a capital receipt, not an income event. Because the money was earned in Dubai while you were a Non-Resident Indian (NRI), it is entirely tax-free upon remittance. While the principal amount remitted is tax-free, once those funds are deposited into an Indian resident savings or fixed deposit account, any subsequent interest generated by that money will be taxable in India according to your applicable income tax slab.
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l In the last two years, I had filed income tax under the new tax regime. Last year, I had taken a home loan. Can I file my income tax return under the old tax regime in July to claim the deduction on interest?—Deepak Jena
Taxpayers in India have the flexibility to switch from the default new tax regime back to the old tax regime when filing their Income Tax Return (ITR), provided they fulfil specific income-source criteria. If your earnings are restricted to non-business categories, such as a salary, pension, or house property, you enjoy annual flexibility and can seamlessly opt out of the new regime directly within your ITR form before the July 31 deadline.
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This transition is beneficial if you intend to claim a deduction of up to Rs 2 lakh on home loan interest under Section 24(b) for a self-occupied property, alongside a deduction of up to Rs 1.5 lakh on principal repayments under Section 80C. However, if you have income from a business or profession, you can switch out of this regime only once in your lifetime. To execute this single switch, business or professional income earners must formally submit Form 10-IEA on or before the due date for filing the return.
l Can I set off loss from options trading against salary income?—Anshuman Yadav
Losses from futures and options (F&O) trading cannot be set off against salary income. Since F&O transactions are treated as non-speculative business income, any losses must be reported under “Profits and Gains from Business or Profession”. Such losses may be adjusted against certain other income heads. If the loss remains unutilised, it can be carried forward for up to eight assessment years and set off only against future business profits. To avail this, you must file the ITR within the prescribed due date, generally using ITR-3.
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The writer is managing partner, AKM Global, a tax and consulting firm. Send your queries to fepersonalfinance@expressindia.com
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
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This article was first uploaded on July three, twenty twenty-six, at thirty-three minutes past eleven in the night.
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