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: Sir, I have LTCL (long term capital loss) of 300000 and 650000 STCG (short term capital gain) in the current fin year. Can I set off LTCL above in STCG with net income of 350000? Do I come under new regime tax if I add my SCSS (Senior Citizen Savings Scheme) income of 129000?
Long-term capital losses (LTCL) can only be set off against long-term capital gains (LTCG).
Investments in the SCSS qualify for a tax deduction of up to Rs 1.5 lakh per financial year under Section 80C of the Income Tax Act, 1961. If you want to take deduction and if it is beneficial, you have to opt for old tax regime. Income from SCSS will not change tax regime.
Anonymous: I am paying 100000 premium per year for SBI wealth builder for a tenure of 21 years. So far I have paid 7 premiums. I would like to know whether it would be taxable at the end of the tenure with an assumed return of 12% per annum?
Broadly there are two types of Life Insurance Policies (1) ULIPs (2) others
ULIP insurance plan offers the dual benefit of investment to fulfil your long-term goals, and a life cover.
For other policies:
1. Policy taken before February 1, 2021
The amount received on the maturity of your ULIP is free from tax as per section 10(10D) of the Income Tax Act, 1961, if the amount of premium paid is less than 10% of the sum assured you will receive [For ULIPs that are purchased before April 2012, the rate is 20%].
2. Policy taken on or after February 1, 2021
After the amendments that were made with the 2021 budget, the returns from your ULIP will be taxed if the premium paid by you in a year exceeds Rs 2.5 lakh. ULIP proceeds will now be charged as a Capital gain (whether long-term or short-term will be decided by the tenure).
Payouts from life insurance policies (excluding ULIPs) issued after April 1, 2023, will be taxable if the total annual premium exceeds Rs. 5 lakh.
Madhu: Hi Sir, My question is on tax in India on income earned in other country (we already paid tax in other country for that income). I stayed for 150 days in Germany in deputation salary, and saved around 8L after paying tax in Germany. Do I need pay tax again in India on this income? How to show this income, while filing the returns in ITR, India?
As your stay in India is more than 182 days you are resident during the year. I understand that in earlier year also you were resident in India. Accordingly, your status is Resident and Ordinary Resident in India.
Accordingly, you are liable to pay tax in India for Income earned outside India also. However, you can take tax credit for taxes paid outside India.
In the Income tax return, you have to show income under salary head and required to show necessary details in Schedule FSI & TR.
Dipak: Respected Sir, I am a senior citizen. My gross income during FY 24-25 works out around Rs 7.5 lakh out of which Rs 5 lakh from bank interest. In addition to above, my LTCG earning during FY 24-25 is Rs 3.4 lakh. How much will be my total tax liability under new tax regime considering. Rs 50,000/ as my standard deduction. Regards
Assuming 5 lakh as interest from FD and 3.4 lakh of LTCG is earned in 1st Qtr, tax liability under new tax regime will come to Rs 24960.
Please note that 50k standard deduction is for salary/pension income and 50k deduction of Sec 80TTB is not available for new tax regime.
You can also calculate the same using income tax calculator available at https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator
Rohit: I hold a property made in year 2000 and selling in Aug 2024. Will I get the benefit of indexation and what rate will I be taxed on capital gains?
Yes for all property held as on July 22, 2024. Benefit of indexation is available only for calculation of tax and not for the purpose of Sec 54. Also if indexation provision is beneficial, tax rate of 20% will apply.
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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.
