'How Can I Save Tax If I Earn Less Than Rs 10L?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.

Damaraju: I am having 1200000/-(Twelve Lakh only) income from all sources and in addition an amount of 226000/- was credited to my account upon selling of all my shares during April 2024. My savings under section 80 C 150000/- and 3500 towards health insurance.
Please advise whether Old OR New Income Tax regime is advantageous to me and how much tax amount I have to remit.

In your case NEW tax regime seems to be more beneficial.

However, above opinion is based on the consideration that your Income (Rs 12 lakh) does not include any Income from Salary & Interest from banks etc.

Moreover, Receipts from sale of shares (Rs 2,26 lakh) cannot be considered, since its LTCG/STCG has not been identified.

In fact our opinion expressed here is just to give you some idea. No correct decisions can be taken in such a situation, where there is substantial lack of information.

Anonymous: I Am Trading Cryptocurrencies Recently. If My Receipts Of Sale Of Crypto Currencies Exceeds 1 Crore.
Can I withdraw this directly into my account through P2P Binance and how much tax will I have to pay to the bank for this?

Income Tax on Crypto Currencies is 30%. It needs to be declared in your ITR & tax paid before filing your ITR.

TDS is deductible @ 1% of Sale proceeds, which are being transferred to your account.

Anonymous: How to save tax for income less than Rs 10 lakh?

Normal Tax Savings, like:

(a) U/S 80-C (Rs 1,50,000) (NSC, Children Education, Tax Saver FDRs, MFs (Equity based), LIC)

(b) U/S 80-D, Medical Insurance maximum amount for Senior Citizens (Rs 50,000)

(c) U/S 80-CCD NPS (Rs 50,000)

(d) U/S 80-TTA Interest Income maximum for Senior Citizens (Rs 50,000), otherwise Rs 10,000.

(e) U/S 80-E Education Loan Interest Paid, if applicable to you.

(f) U/S 24-B, You can enjoy deduction if you are paying EMI of Housing Loan (Maximum Limit Rs 2,00,000)

Hope this info will serve your purpose.

Anonymous: Sir, IT assessess annual income below Rs 5 lakh senior citizen person cash gift to grandson Rs 1 crores amount through on bank mode f.y.24-25 Question: Sec 68 provision applicable for it act?

Grandfather can gift any amount to his grandson, which shall not be taxable in the hands of grandson. As suggested Gifted amount should only be through banking channels.

IT Department can demand an explanation (u/s 68) from the grandson & he needs to explain this entry, to the satisfaction of assessing officer.

I feel, details provided in your query can be explained to AO without any difficulty.

Vijay: I am looking for saving tax from my income, FD & MF interest. Salary 22L, FD 60L, MF 25L. Please advise.

Let me confirm your figures as, Salary Income Rs22L, Interest from FDR Rs 60L & MF Gains Rs 25L.

Kindly avail normal tax savings like, u/s 80-C, Mediclaim u/s 80D, Pension Plan etc.

Besides above you would also be getting Standard Deduction from Salary (Rs,75,000), Rebate from Interest Income (Rs,10,000) & Exempt amount from LTCGs (Rs,1,25,000), if income from MFs is covered under Long Term Capital Gains.

You need tax planning in advance. You may shift some of your investments in Residential Property by taking some amount of loan also. Interest & repayment of loan would further add to your tax planning, besides it may give you benefit of appreciation in its value. If your income from MFs is by selling some units/shares, you may probably shift Selling of these funds by few months & shift LTCG to next financial year.

• You can ask rediffGURU T S Khurana your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

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.