Suggestion to avoid Income TAX, TAX Planning
This query is : Resolved
17 March 2024
Shall you please clarify on below on ways to avoid i-tax for this fin year, as extended HELP.
Q1. U/s 87A, will a non-salaried person (no income other than Capital gain) < 60 age, can get exemption of Rs.25000 (having leass than 7 lac income) against capital gains.
Similarly, Can the same person get 50000 std.deduction?
Q2. STCG =X LTCG= Y, At the time of efiling, Can I adjust i.e. deduct the basic nil tax limit of 3 lac against STCG, rather than LTCG?
Q3. TO avoid tax, what shall I do till 30.3.24.
Any other way other than selling shares for loss, and re-buy to neutralize for tax limit.
Q4 While I am a second member of the trading a/c, and wife as 1st Holder. , to bring in nill tax , Can we share the capital gains STCG or & LTCG? I shall file in old regim, she will in new regim. Subsequent years, we shall not share these gains?
Q5. Can any one (salary & OR profession) filed in NEW regim earlier , now shall it be filed in OLD regim and vice versa.
Q1. U/s 87A, will a non-salaried person (no income other than Capital gain) < 60 age, can get exemption of Rs.25000 (having leass than 7 lac income) against capital gains.
Similarly, Can the same person get 50000 std.deduction?
Q2. STCG =X LTCG= Y, At the time of efiling, Can I adjust i.e. deduct the basic nil tax limit of 3 lac against STCG, rather than LTCG?
Q3. TO avoid tax, what shall I do till 30.3.24.
Any other way other than selling shares for loss, and re-buy to neutralize for tax limit.
Q4 While I am a second member of the trading a/c, and wife as 1st Holder. , to bring in nill tax , Can we share the capital gains STCG or & LTCG? I shall file in old regim, she will in new regim. Subsequent years, we shall not share these gains?
Q5. Can any one (salary & OR profession) filed in NEW regim earlier , now shall it be filed in OLD regim and vice versa.
18 March 2024
1 No 87A and std deduction allowed.
2 you can't adjust ITR form automatically adjust.
3 No other way.
4 yes you can do so.
5 salary person can switch over no limit for professional switch over allowed once.
2 you can't adjust ITR form automatically adjust.
3 No other way.
4 yes you can do so.
5 salary person can switch over no limit for professional switch over allowed once.
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19 March 2024
Hi Thanks for your quick reply, still shall you pls. some more clarrify,
Q1.Then what for rebate upto 25K given in 87A. Shall it not abosorbe STCG atleast?
I have tested thru' TAX-calculator in the incometax site, that took 3LAC basic limit Excemption from STCG. Will the same happen in actual filing?
Q2. ITR form basic nil TAX automatically adjust to which gain LT or ST?
Q3. Wife made IT return last year 2022-23 only, not any time earlier. Can she compensate Losses occured in past 8 years in ST and LT for this year's gain in LT & or ST ?
Is that IT return filing to test for this FY open in Incometax portal now, or should wait after APR 2024?
Q1.Then what for rebate upto 25K given in 87A. Shall it not abosorbe STCG atleast?
I have tested thru' TAX-calculator in the incometax site, that took 3LAC basic limit Excemption from STCG. Will the same happen in actual filing?
Q2. ITR form basic nil TAX automatically adjust to which gain LT or ST?
Q3. Wife made IT return last year 2022-23 only, not any time earlier. Can she compensate Losses occured in past 8 years in ST and LT for this year's gain in LT & or ST ?
Is that IT return filing to test for this FY open in Incometax portal now, or should wait after APR 2024?
19 March 2024
1 Rebate not available for capital gains. Yes.
2 ST will be adjusted first.
3 yes, if losses carried forward in the return.
Download ITR form and try.
2 ST will be adjusted first.
3 yes, if losses carried forward in the return.
Download ITR form and try.
21 March 2024
Hi Sir,
My intension is NOT to contradict, but to get better understanding to avoid TAX, as this is big money for me.
Thereby Refer the .doc and .pdf from calculator generated from incometax.gov.in (my investment figures) and the link:https://cleartax.in/s/income-tax-rebate-us-87a . The link says STCG u/s 111A in invested in shares, LTCG from land / properties but not in LT shares are covered/ can get rebate 87A. Also, pls. let me my wrong understanding if any from the taxcalculator .pdf.
From the .pdf calculations: my 3.25 lac STCG, after basic tax exempted 3 lac, rest Rs.25000
My Other income like dividend,interest etc = 40000/
Totalling = 65000 ; It's 15% tax = 9750.
Same amt. is exempted U/S 87A.
THEREBY, UPTO 7 lac THE STCG IS EXCEMPTED. Am I correct?
So, LTCG 2.25lac after 1lac exmpt. = 125000 of 10% tax = 12500.
4% CESS = Rs500/
Net tax to pay = 13000/-
If I show loss of 1.25 lac no tax appears.
Do the interest 234 B & C applicable for me as individual gained thru' shares/capitals.
My Thanks inadvance, for your golden guidance..... !
SINCE THERE IS NO PROVISION HERE TO ATTACH FILE, Shall you please provide me your email ID, I shall send. My Id is baskaran_kanchi@yahoo.com
I HAVE PASTED THE .doc:( https://cleartax.in/s/income-tax-rebate-us-87a ):
• Long-term capital gains under Section 112 of the Income Tax Act. (Section 112 applies for long-term capital gains on the sale of any capital assets other than listed equity shares as well as equity-oriented schemes of mutual funds)
• Short-term capital gains on listed equity shares and equity-oriented schemes of mutual funds under Section 111A of the Act, on which tax is payable at a flat rate of 15%.
The .PDF:
My Taxable Income 590000
1. Tax at Normal Rates 0
2. Tax at Special Rates (Capital Gains, Lottery, etc.)
View details
RS.22250
Short Term Capital Gains (Covered u/s 111A) 9750
Long Term Capital Gains (Charged to Tax @20%) 0
Long Term Capital Gains (Charged to tax @ 10%, other than LTCG u/s 112A) 0
Long Term Capital Gains u/s 112A(Charged to tax @ 10%) 12500
Winnings (from Lottery, Crossword Puzzles, etc.) 0
Total Tax before Rebate =22250
Less: Tax Rebate u/s 87A =9750
Net Tax after Rebate =12500
Add: Surcharge 0
Add: Health & Education Cess 500
Total Tax on Income 13000
TDS + TCS + MAT / AMT credit utilized
V
Self-Assessment Tax / Advance Tax
Provide detail V0
Balance Tax Payable / Refundable 13000
Add: Interest u/s 234A 0
Add: Interest u/s 234B 130
Add: Interest u/s 234C 640
Add: Fees for late filing of return u/s 234F 0
Total Tax is RS 13000
My intension is NOT to contradict, but to get better understanding to avoid TAX, as this is big money for me.
Thereby Refer the .doc and .pdf from calculator generated from incometax.gov.in (my investment figures) and the link:https://cleartax.in/s/income-tax-rebate-us-87a . The link says STCG u/s 111A in invested in shares, LTCG from land / properties but not in LT shares are covered/ can get rebate 87A. Also, pls. let me my wrong understanding if any from the taxcalculator .pdf.
From the .pdf calculations: my 3.25 lac STCG, after basic tax exempted 3 lac, rest Rs.25000
My Other income like dividend,interest etc = 40000/
Totalling = 65000 ; It's 15% tax = 9750.
Same amt. is exempted U/S 87A.
THEREBY, UPTO 7 lac THE STCG IS EXCEMPTED. Am I correct?
So, LTCG 2.25lac after 1lac exmpt. = 125000 of 10% tax = 12500.
4% CESS = Rs500/
Net tax to pay = 13000/-
If I show loss of 1.25 lac no tax appears.
Do the interest 234 B & C applicable for me as individual gained thru' shares/capitals.
My Thanks inadvance, for your golden guidance..... !
SINCE THERE IS NO PROVISION HERE TO ATTACH FILE, Shall you please provide me your email ID, I shall send. My Id is baskaran_kanchi@yahoo.com
I HAVE PASTED THE .doc:( https://cleartax.in/s/income-tax-rebate-us-87a ):
• Long-term capital gains under Section 112 of the Income Tax Act. (Section 112 applies for long-term capital gains on the sale of any capital assets other than listed equity shares as well as equity-oriented schemes of mutual funds)
• Short-term capital gains on listed equity shares and equity-oriented schemes of mutual funds under Section 111A of the Act, on which tax is payable at a flat rate of 15%.
The .PDF:
My Taxable Income 590000
1. Tax at Normal Rates 0
2. Tax at Special Rates (Capital Gains, Lottery, etc.)
View details
RS.22250
Short Term Capital Gains (Covered u/s 111A) 9750
Long Term Capital Gains (Charged to Tax @20%) 0
Long Term Capital Gains (Charged to tax @ 10%, other than LTCG u/s 112A) 0
Long Term Capital Gains u/s 112A(Charged to tax @ 10%) 12500
Winnings (from Lottery, Crossword Puzzles, etc.) 0
Total Tax before Rebate =22250
Less: Tax Rebate u/s 87A =9750
Net Tax after Rebate =12500
Add: Surcharge 0
Add: Health & Education Cess 500
Total Tax on Income 13000
TDS + TCS + MAT / AMT credit utilized
V
Self-Assessment Tax / Advance Tax
Provide detail V0
Balance Tax Payable / Refundable 13000
Add: Interest u/s 234A 0
Add: Interest u/s 234B 130
Add: Interest u/s 234C 640
Add: Fees for late filing of return u/s 234F 0
Total Tax is RS 13000
22 March 2024
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