Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Vipul Bhavsar, a chartered accountant -- with 16 years of experience -- from The Institute of Cost Accountants of India, will answer them.
Ravindra: Sir, I worked in Company A from 2005 to 2017, Company B from 2017 to 2018, Company C from 2018 to 2021, Company D from 2021 to 2023, Company E from 2023 to 2024. Currently, I quit my Corporate career and will build my own start-up in 2025 Jan. Currenlty I am un-employed and age is 49 years. I have accumulated EPF worth of 1 crore. Can you please let me know if I can withdraw all EPF now taxes that I need to pay? Thanks in advance.
Dear Sir, assuming that you have served continuously during the given periods with different employers for 5 years at least and the Provident fund is recognised, you have no tax liability and it is exempt from tax.
Anonymous: Hello Sir, I recently sold a property that I inherited, and now I'm worried about the capital gains tax. It's a 30 year old property. Are there any exemptions or strategies I can use to minimise the tax on this sale? I'm considering reinvesting in another property -- would that help? I'm 45, from Delhi.
Sir, I have made the following assumptions before answering your questions since the data is incomplete.
1. The property is inherited before 2 years from date of sale
2. Apart from the property is sold, you own only one house
3. The inherited property that is sold is a residential house/plot
4. New property being bought is residential house property
You can invest the long term capital gain and claim exemption under section 54 and 54F subject to the new property is not sold before 3 years from the date of acquisition.
Anonymous: My husband and I recently bought our first home and are now considering purchasing a second property as an investment. We're unsure about the tax implications of owning multiple properties. What deductions can we claim on the second home loan, and how is rental income taxed? Are there any benefits or pitfalls we should be aware of when it comes to capital gains if we sell in the future? Would old tax regime work better for us?
Hello Madam,
1. Assuming New property being held for investment shall be rented out, the home loan interest is allowed as deduction from rental income. Rental income after reducing home loan interest, if any of this property shall be added to your existing income eg. salary/business. This can be done only if old scheme of taxation is adopted.
2. If sold, capital gain shall be applicable and exemption under 54, 54 F, 54EC, etc., may be claimed.
It is advised to consult a CA as there are different scenarios which shall be required to be considered like your existing income, tax liability comparison between old and new regime, your future planning, etc.
Anonymous: An ancestral land property was partitioned among 4 brothers in 2012. The partition deed was registered which said each party the value would be Rs 4 .5 lakh. Now one of the brothers would like to sell the same. How is capital gains arrived at? If he receives 50% in cash and 50% by cheque, what would be the IT implications? If the cash and cheque amount is invested to buy an apartment, then what are the tax implications?
Dear Sir, the selling brother shall calculate the capital gain for his share in the property. Considering the holding period to be more than 2 years, he will be able to claim exemptions under section 54, 54F, 54EC etc.
Shashi: My dad has PPF account that matured in 2017, and he extended that for 5 years, and again extended in 2022 for 2027. Last month my dad passed away. I read whole notification of 'THE PUBLIC PROVIDENT FUND SCHEME, 1968', from that I conclude, I can keep it till maturity 2027. But my question is that can I invest in 2025 and 2026?
Dear Shashi, you can invest it the way you want in 2025 and 2026 but in your name.
Rajan: Hello sir, FM says no tax up to 12 lakh but she has also said tax slabs where there are slabs varying from 0 to 30percent; not clear what to infer. Is this for those whose income is over and above the 12laks per annum?
No tax up to 12 lakh is for those who opt for New Tax Regime. For Old Tax Regime and Income above Rs 12 lakh, the tax slabs and rate are applicable.
Lone: As of now I have opted for Old Tax Regime. With my income of Rs 11.89 LPA, can you please suggest which regime is good: Old or the New? Also guide on tax saving components for the respective option?
If you are going for Old Tax Regime then you have the following options for reduction in tax outgo:
1. Standard Deduction on salary
2. HRA
3. NPS contribution from Salary
4. Investments under 80 C i.e. Life Insurance, Tax saving MF, 5 yr FD
5. Mediclaim 80D
6. Voluntary Payment of NPS upto Rs.50000
7. If you have home loan then Home loan Principal can be claimed under 80C and Interest under House Property
8. Interest on Savings Account upto Rs.10000
Based on these deductions, you need to calculate total deduction and tax liability. If the income after deduction goes below Rs 5 lakh, then there will be no tax liability for you.
Anonymous: How much will a person have to pay tax if his annual salary income is Rs 20 lakh?
Around Rs 2,08,000 for FY 2025-26 as per the New Tax Regime.
Anonymous: What will be tax for salary of Rs 32,00,000?
Around Rs 5,62,000 for FY 2025-26 as per the New Tax Regime.
- You can ask rediffGURU Vipul Bhavsar your questions HERE.
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Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.
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