TDS On Dividend: 'Will This Create Tax Problem?'

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.

Anonymous: For the FY 23-24, my income from salary is Rs 7,02,876 as per Form 16.
I also have interest income of Rs 9,120.
I also sold mutual funds and had long term capital gains of Rs 87,983.
I want to know as to how my total income and tax would be computed.
I was under the impression that my salary and interest income will be treated differently and will not be eligible for tax under the new tax regime and my long term capital gain will be exempted since it is less Rs 1 lakh, thus resulting in nil income tax.
Is it correct or not?

Assuming mutual funds redeemed are equity-based schemes, tax on said redemption will be NIL. Tax on salary and interest will be Rs 26,200 plus cess.

You can calculate your income tax here (external link). 

AnupG: Hi have purchased a site on 2011 & we sold on 2024 Feb. Against the income whether we have to purchase a site or house property to avoid CG Tax?

Section 54F of the IT Act allows an exemption on capital gain from the sale of any property other than a residential house wherein taxpayer should invest the net sales amount of the old property for purchase of a new residential house.

Chandran: Sir, in Fy23-24 a company paid dividend after deducting due tax. The dividend amount before TDS is visible in AIS but not the TDS amount. On correspondence, the company sent me the statement pertaining to the said TDS in Form 16A. Now how to proceed further is my query. If the amount is not appearing in AIS, will it create complications on ITR filing, I am worried. Are dividend figures auto-populated? If no, I can manually feed total of all figures. If yes, identifying this particular TDS among a dozen other Co TDSs become difficult. Please give me directions.

If TDS is deducted but not appearing in AIS, it is advisable to claim such TDS while filing ITR and intimate company to look into it (through e-mail/letter).

Shailesh: I am a first time tax assessee for last FY 2023-24.
I want to opt for old tax regime and want to continue the same for future years.
Do I need to first fill and submit the Form 10 IEA declaring regime selection of old tax regime followed by ITR submission? Kindly clarify. Thank you.

If you have income from business and profession, you have to file Form 10IEA to opt for old tax regime for FY 2023-24

Anonymous: Hi Mihir, I have a question for you. I am freelancer (IT sector) and having contract with foreign customers. At the time of filling return for FY 23-24, what should I opt for under section 44AD or section 44ADA? Thanks.

Technical consultants are eligible for 44ADA. If your services are of the nature of technical consultant, you can opt for 44ADA provided you are within specified limits of receipts (Rs 50 lakh/Rs 75 lakh).

• You can ask rediffGURU Mihir Tanna your questions HERE.

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