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.
Vipul: My estimated gross annual income for FY2023-24 will be Rs 6.48 lakhs (includes normal and MF capital gains).
Will I be paying zero tax as it is below Rs 7 lakhs?
Regards
A person is not required to pay any tax if their tax liability for FY 23-24 under the old tax regime is less than or equal to Rs 25,000. This means their tax liability on capital gain, salary and other sources is less than or equal to Rs 25,000.
Tax on MF depends on the holding period, type of scheme (equity/debt).
You can do the exact calculation through the income tax calculator available at https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
VA: I have pension income of Rs 15,000 pa under salary head and interest from savings and FD Rs 13,000 pa and Rs 32,000 as LIC pension under income from other sources.
There is no other income as I am a senior citizen and till now I was selecting old regime.
I want to encash my mutual funds for my personal use.
My queries:
1. Should I choose new tax regime? Will it be beneficial or the old can be continued?2. After all the above incomes, my mutual fund long term capital gains on redemption can be set off against Rs 7 lakhs pa in te new tax regime on which no tax is to be paid. OR we need to pay 10% LTCG tax (after deducting Rs 1 lakh) even if LTCG is below the Rs 7 lakhs limit?
Thanks in anticipation.
The selection of tax regime will depend on certain factors.
Usually, the old scheme is beneficial if a substantial amount is eligible for deduction/exemption.
You can do an exact comparison through the income tax calculator available at https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx.
A person is not required to pay any tax if their tax liability for FY 23-24 under the old tax regime is less than or equal to Rs 25,000.
Accordingly, if tax liability on capital gain, salary and other sources is less than or equal to Rs 25,000, no tax is required to be paid.
Pijush: Sir, refund amount of Rs 26,650 was shifted to my account on 13.10.2022 for the FY 2022-23 as per 26 AS but the amount was not credited to my account till now.
Matter was raised several times through grievance portal but still pending.
Please suggest me what can i do now?
I am also a sr citizen.
Pijush Kanti Paul
Agartala
Many taxpayers are not able to claim refunds mainly due to two reasons:
(1) Outstanding tax demand
(2) Issue in crediting refund in given bank account
Please check at the income tax portal if any income tax demand is outstanding.
Also check if bank accounts are properly validated.
For bank account validation, the income tax department has asked to check following in the news tab dated September 13, 2023.
- Check the bank a/c validation status for refund.
- Has your bank merged with another bank?
- Has your bank branch changed?
- Has your bank account number changed?
- Has your name in the bank account changed?
- Has your bank account closed or become inactive?
- Has the IFSC code of your bank account changed?
If yes,
You need to update/ revalidate your bank a/c details on the e-filing portal.
To update/revalidate your bank account details, login to https://eportal.incometax.gov.in > Profile > My bank Accounts > Click on three vertical dots > Choose Revalidate > make required changes in data for updating details > Click on Validate button.
For adding a new bank account, login to https://eportal.incometax.gov.in > Profile > My bank Accounts > Add bank account > fill the required details > Click on Validate button.
After some time, you can check the status of the bank account validation.
Once the status of bank account changes to validated, don't forget to nominate it for refund by enabling the 'Nominate for Refund' button.
If the bank account validation has failed, you can remove that bank account by clicking on the three vertical dots on the 'My bank accounts' screen.
Please ensure that only those bank accounts which are linked with PAN should be validated and nominated for refunds. Refunds cannot be credited to bank a/cs not linked with PAN.
For more info, watch the video 'How to pre-validate your bank account': https://youtu.be/2ie86mHNeyc (external link to Income Tax India's YouTube Channel)
For any further assistance you may reach the helpdesk contact numbers mentioned at https://www.incometax.gov.in/iec/foportal/latest-news
Hp: Hi, I am a defence pensioner.
Of late, the OROP-2 arrears are being paid out periodically.
Is there any gain if the stipulated amounts are split in previous FYs 2019-2023 as suggested through Form 10E?
In case you receive arrears in the nature of salary, relief u/s 89 can be claimed. In order to claim such relief, you are required to file Form 10E.
Tax relief is provided by recalculating tax for the year in which arrears are received and the year to which the arrears pertain; the taxes are adjusted in the year in which they were due.
Anonymous: Hi Mihir, my salary is Rs 35 lakhs annually.
I have no home loan interest to claim for tax exemption.
Should I opt for old regime or new regime will be better for me?
Old tax regime is beneficial to an assessee if a substantial amount of deduction/exemption is claimed.
From the information provided, I understand that new tax regime is likely to be beneficial for you.
For exact calculation, you can refer to income tax calculator available at https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
- You can ask rediffGURU Mihir Tanna 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.
