Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Mihir Tanna, associate director, S K Patodia and Associates, will answer them.
BHARAT: I don't have Income to be taxed at slab rate except STCG from DEBT MUTUAL FUNDS. I do have income from LTCG, DIVIDENDS, BANK INTEREST ETC. If I invest in ELSS whether IT DEPT will allow deduction under Section 80c against STCG FROM DEBT MUTUAL FUNDS in OLD TAX REGIME or they will first set off this income against Rs 3 Lakh income which is BASIC EXEMPTION LIMIT for Senior Citizens. Also, where to show STCG FROM DEBT MUTUAL FUNDS in ITR 3.
80C is not allowed against STCG taxable u/s 111A and LTCG taxable u/s 112 as well as 112A. Hence in your case STCG not covered in 111A will be adjusted against 80C.
Also for old regime Rs 2.5 lakh basic exemption limit will apply.
If ITR 3 is not notified for FY 24-25, but in FY 23-24 there was option at serial number 5 wherein you have to show short term capital gain not covered in previous 4 options.
Nk: Finance Minister Nirmala Sitharaman has announced that there will be no income tax for those earning up to Rs 12 lakh. But in the same breath she said that... those earning up to Rs 4 lakh per annum will pay nil tax. Those earning between Rs 4 lakh to Rs 8 lakh will have to pay income tax of 5 per cent.
Those earning between Rs 8 lakh to Rs 12 lakh will have to pay income tax of 10 per cent. Those earning between Rs 12 lakh to Rs 16 lakh will have to pay income tax of 15 per cent.
Those earning between Rs 16 lakh to Rs 20 lakh will have to pay income tax of 20 per cent.
Those earning between Rs 20 lakh to Rs 24 lakh will have to pay income tax of 25 per cent, and those earning between Rs 24 lakh will have to pay income tax of 30 per cent.
Confused why one will have to pay tax at all if there is no income tax for those earning up to Rs 12 lakh per annum?
Technically there is no tax if taxable income up to 12 lakh (except special rate income), as you get rebate equivalent to tax charged. So you have to calculate tax as per slab rate first and reduce tax liability by way of rebate.
Sanjay: Hi Mihir my Salary is 19 Lakh. What is the actual income tax I will pay for 2025-26?
As per the amendment proposed for FY 25-26, under new tax regime you will pay tax of Rs 1,71,600 after taking benefit of Rs 75,000 of standard deduction.
Narsingh: Dear sir, I have been NRI since 1996, every year staying outside India for averaging 190 to 250 days. Salaried employee working with resident visa in Qatar. Now I want to retire.
This year my LTCG from sale of debt fund was 14,80,000. I may have around 45,000 dividends in India from shares. So, will cross 15 lakh Indian income. I have two questions: first if I do more than 120 days in India then I will become RNOR this year and can use my exemption limit of 3 lakh to offset LTCG of 2 lakh. Is it correct?
Second question is if I do less than 120 days in India, my status this year too will remain NRI. So, if I am an NRI for all 29 years, will it give me an extra year of RNOR status in India?
How to determine whether I will be RNOR for 2 years or three. 3 years RNOR gives me advantage to keep my most of money in RFC accounts to get tax free interest. Most of my savings are in FCNR accounts only. Suggest will I get 3 years RNOR after retirement or not by keeping NRI status this year or make this year RNOR and no loss.
1st yes: Minimum exemption limit available to RNOR also.
2nd: An individual who is a citizen of India who is not liable to tax in any other country will be deemed to be a resident in India, only if the total income (other than foreign sources) exceeds Rs 15 lakh and nil tax liability in other countries. So in your case, even if you are in for less than 120 days, you will be RNOR.
3rd: For FCNR account, please confirm with your Bank.
Anonymous: How much is tax on gratuity and superannuation and how to minimise the tax impact on retirement?
Gratuity is exempt as per prescribed formula which depends on last salary drawn: (Basic + DA) and subject to limit of Rs 20 lakh.
Superannuation is taxable.
To minimise tax, you can opt for old tax regime if you are paying substantial amount for eligible deductions exemptions.
- You can ask rediffGURU Mihir Tanna your questions HERE.
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