Ans: Dear Mr. Mugalur
The slab rate under the old tax regime for super senior citizen has not been changed and remain at 20% for income in the range of Rs. 5 Lakhs above to Rs. 10 Lakhs.

In case you are opting for the old tax regime all deductions that were available earlier are still available to you but that would not be the case if you opt for the new tax regime, where the deductions stated by you will not be available

Ans: Hi
Generally all financial institutions have a defined policy on investments held by minors and what should be the process of updation of system on such minors attaining the age of majority.

You could check with the institution on their policy and seek appropriate redressal to this issue

Ans: Hi Achajya

As the breakdown of the deduction is not available, it would be difficult for me to correctly state the best tax regime suited for you.

You could use the calculator released by the tax department to validate the tax liability under both options. The link is pasted below:

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi Adarsh
The surcharge for taxable income of Rs. 50 Lakhs to One Crore is 10% and between One Crore and Two Crores is 15%

Ans: Hi
The only deductions allowed for a salaried individual are the standard deduction of Rs. 50,000, NPS contribution by employer under section 80CCD(2), Family pension. Other than that no other deductions are available

Ans: Hi
There are no specific benefits specified for Senior Citizen under the new tax regime as that is the slab rate available to all without any distinction as regards age.

You would need to compare the tax between the two regimes to validate the best option

Ans: Hi Jayakumar
I am presuming that you are referring to a house that had been acquired as reinvestment of capital gain from another earlier asset.

Considering the above, this reinvested asset (residential house) should not be sold before completion of 3 years as part of the requirements of the earlier reinvestment conditions.

If this house is sold before the term of 3 years then while calculating the long term capital gain of this property, you would need to reduce the capital gain amount (old asset) against the cost of this asset.

An example to understand this is stated below:

Cost of this house (purchased in 2021) is say Rs. 10,00,000
Capital gain reinvested from sale of earlier house is say Rs. 500,000 (i.e. you used Rs. 5 Lakhs from earlier sale)

Suppose you sold this house after holding it for 24 months (making it a long term asset but resulting in failure of the condition of section 54 w.r.t. holding the same for more than 36 months)

Sale consideration of this house is say Rs. 12,00,000

Then while calculating the LTCG of this asset you would need to reduce Rs. 5 Lakhs from the cost and thereafter find the indexed cost

Ans: Hi
The threshold tax free limit for individuals below the age of 60 is Rs. 2.50 Lakhs under the old tax regime.

Yes while filing it would be relevant to first evaluate which tax regime yields rationalized tax and thereafter choose that regime

Ans: Hi
While the Rs. 7 Lakh threshold is for all income; incomes that come with fixed rate of tax may need to be evaluated considering the amount of income in the regular tax slab rate.

Ans: Hi Adhir
There is no tax free slab of Rs. 7 Lakhs but if the income is below Rs. 7 Lakhs and if you opt for the new tax regime then you are eligible for a rebate that could make the tax liability Nil.

Nevertheless, if your income exceeds Rs. 7 Lakhs then you may still opt for the new tax regime to leverage on the lower tax slabs (you would not be eligible to the rebate as provided under section 87A though).

In this context, you would need to evaluate the option that you want to go ahead with so as to check the see which regime provides you the lowest tax option

Ans: Hi Anand

Did not understand your question about no capital gain upto Rs. 10 Crores, so would require better input for the same.

Ans: Hi
Tax deductions are available to co-owners but the proportion is not specifically defined in the tax act. The basis for the proportion of the claim could be linked to the availability of funds with the co-owner and / or the income generating possibilities of that person.

The following aspects may help the claim in a better way:

The co-owner should also be the co-applicant in the loan
The funding and repayment should preferably go out of joint account of the co-owners
The income should ideally flow to the joint account though this is not really high on priority as one of the co-owner could handle the household expenses while the other co-owner pays the installment

Ans: Hi
You could explore the comparative calculations between new and old tax regime using the calculator released by the tax department at the following link

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

As regards recommendations to save tax, you may explore the following:

Additional Rs. 50,000 in NPS under section 80CCD (1B)
NPS contribution under section 80CCD(2)
Health insurance Premium paid for self, family & parents. In case parents do not have insurance then any medical expenditure incurred on their hospitalization
Some bit of salary structuring may also help in reducing the tax bill but employers are generally touchy about the risk they are willing to take on such structuring

Ans: Hi
The income from debt funds could be in either of the 2 forms, viz., dividend or capital gains. In case of dividend, the amount is added to your regular income and taxed based on the applicable slab rate i.e. if you do not have taxable income then you do not pay any tax on the said dividend.

Capital gain again is segregated into long term (holding period exceeding 36 months) and short term (less than 36 months).

Short term capital gain is taxable in the same manner as dividend and taxed based on your slab rate, which means if you do not have any taxable income then you do not pay any tax else it would depend on the slab rate.

Long term capital gain (which would be worked out after indexation) would be taxed at a flat rate of 20% regardless of your slab rate. Yes, would be eligible to a marginal relief in case you do not have other (regular slab rate) income i.e. you may pay something lesser than 20%.

These are all dynamic number related workings so I could only give you just generic conceptual knowledge and not specific amounts

Ans: Hi Gaurav
Taxability of ELSS MF would be dependent on your holding period as also the capital gain that arises on the said redemption.

Accordingly, if you have redeemed the ELSS MF within 3 years of acquiring them then the amount of deduction that you claimed on account of such investment would be added to your current income.

Additionally, the gain on the redemption would be taxed as capital gain

Ans: Hi MJ
The inputs given by you is summary and not detailed so i have assumed that the HRA exemption is the same as the HRA amount of Rs. 192000 and i have also assumed that your section 80C investment under PF etc is Rs. 150000.

Based on above the old tax regime looks better

The tax department has updated a new calculator for users to check the benefits of the two regime and you could use that to validate your numbers. The link is pasted below

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx

Ans: Hi
You may save about Rs. 50,000 by choosing the new tax regime

Ans: Hi Mr. Pankaj
The inputs provided by you is not very clear to me and hence i am reserving my response. Request you to clearly state the annual income breakdown so that i could provide a clear response.

Ans: Hi Prash
As GST and direct tax option of presumptive tax are two separate taxes, the threshold limit of the requirement of registration under GST would be applicable once you cross the Rs. 20 Lakh mark.

Ans: Hi
If you do not have income from business or profession then you could switch between the two regimes in two separate years

Ans: Hi Umesh
May be better to go with the new tax regime as it may reduce your tax by about Rs. 93000

Ans: Hi
It may be difficult to state the best option without the real investment numbers but if you have substantial amounts under these investments / deductions, old tax regime may be better

Ans: Hi Neeraj
Employer's contribution to NPS is allowed as deduction.

No surcharge on income of Rs. 20 Lakhs

The income (including capital gain) may need further evaluation or comparison as marginal relief concept would be applicable in working out the tax on regular income vis-a-vis capital gain income with special rates. It would be difficult to specify the best tax regime option without real comparison

Ans: Hi Prakash
New regime could get you a tax reduction of about Rs. 70,000

Ans: Hi Rajan

As the owner of the land is your father, the taxability would apply to him alone and not to you or your brother.

The query would need further clarity in terms of the following aspects:

Whether this was an agricultural land?
What is the distance of the land from the nearest municipality jurisdiction?
What is the population of the place where the land is located?

In case this is an urban non-agricultural land then you may need to get the valuation report for the land as on April 1, 2001 from an Income Tax approved valuer. This would become your basic cost reference on which you would need to apply indexation. An example is stated below for easy understanding.

Suppose the valuation report brings out a value of Rs. 20 Lakhs as on April 1, 2001

Current Cost Inflation Index (CII) is 331 and base year (2001) index is 100

So indexed cost of acquisition would be Rs. 20 Lakhs x 331 / 100, which is Rs. 66.20 Lakhs

So capital gain would be Rs. 75 Lakhs - Rs. 66.20 Lakhs = Rs. 8.80 Lakhs on which your father would need to pay 20+% of tax.

As this is a regular asset, in case he wants to pay NIL tax then he would need to reinvest the full sale consideration in some eligible asset such as residential house or capital gains bonds (go-downs / shops are not eligible assets).

If he reinvests in eligible asset partially then he would get exemption only proportionately. Taking the same example:

Suppose he reinvests Rs. 50 Lakhs in capital gain bond (say NHAI or REC) then the eligible proportionate exemption would be as follows:

Rs. 50 Lakhs / Rs. 75 Lakhs x Rs. 8.80 Lakhs = Rs. 5.87 Lakhs

He would need to pay the 20+% tax on Rs. 2.93 Lakhs. He would be eligible to marginal relief provisions if his pension income is not substantial. Also, he may end up with Nil tax if his total income is below Rs. 5 Lakhs

Ans: Hi Abdul,
I am assuming that you meant to say Rs. 44,000 as home loan principal and the house is used for self occupation. Also,, as you have not stated the health insurance premium amount, i have not considered that as well. My response is based on the above assumption.

It would be better to opt for the old tax regime as that generates about Rs. 15,000 more tax benefit

Ans: Hi
I am assuming that the petrol allowance and medical allowance would not be allowed as deduction by your employer as transport allowance & medical allowance had been done away with the introduction of Standard Deduction. Also, assuming that the home loan interest is on account of self occupied property.

Based on the above assumptions, it may be better to opt for the Old Tax Regime as the tax benefit would amount to about Rs. 23,000

Ans: Hi
Assuming that the home loan interest is on account of self occupied house, new tax regime may get you a small tax reduction of about Rs. 2,500

Ans: Hi

ITR 2 could be used

Ans: Hi Vishal
Assuming that you would have tax investment of Rs. 1.50 Lakhs, Home Loan Interest of Rs. 1.49 Lakhs, HRA exemption of Rs. 3 Lakhs & you are claiming LTA exemption of Rs. 50,000 then the old tax regime may be better for you as that may reduce your tax bill by about Rs. 85,000.

If any of the above assumptions are not correct then the opinion may change accordingly

Ans: Hi
New tax regime would be better for you as you could reduce your tax bill by about Rs. 70,000

Ans: Hi Zaky
Would appreciate if you could elaborate your query further detailing your current tax position and your proposed plan. I could then give you an appropriate response

Ans: Hi
New tax regime may get you a tax reduction of upto Rs. 70,000

Ans: Hi,
New tax regime would be best for you as the tax savings could range between Rs. 23,000 to Rs. 54,000 depending on the tax saving investments you have.

Ans: Hi
Yes if your income is below Rs. 7 Lakhs then you could pay Nil tax under the new tax regime. This option is available to all individuals opting for the new tax regime and includes all heads of income

Ans: Hi Ashwini
Profession Tax deduction would not be available under the new tax regime

Ans: Hi Mahipal
This action will get covered under the clubbing of income provisions and your wife's income from the investment will get added to your income

Ans: Old Tax Regime - For Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 300,000 Nil
Rs. 300,001 - Rs. 500,000 5% above Rs. 300,000
Rs. 500,001 - Rs. 10,00,000 Rs. 10,000 + 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 110,000 + 30% above Rs. 10,00,000

Old Tax Regime - Super Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 500,000 Nil
Rs. 500,001 - Rs. 10,00,000 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 100,000 + 30% above Rs. 10,00,000

New Tax Regime - Senior Citizen & Super Senior Citizen

Income Tax Slab Income Tax Rates

Up to Rs. 3,00,000 Nil
Rs. 3,00,001 - Rs. 6,00,000 5% above Rs. 3,00,000
Rs. 6,00,001 - Rs. 9,00,000 Rs. 15,000 + 10% above Rs. 6,00,000
Rs. 9,00,001 - Rs. 12,00,000 Rs. 45,000 + 15% above Rs. 9,00,000
Rs. 12,00,001 - Rs. 15,00,000 Rs. 90,000 + 20% above Rs. 12,00,000
Above Rs. 15,00,000 Rs. 1,50,000 + 30% above Rs. 15,00,000

Ans: Hi Chittanand

I am assuming that the tax saving investments are fully available for deduction.

With that assumption, your tax saving by opting for the new tax regime would be about Rs. 23,000

Ans: Hi
Employers generally give the option to employees to declare their other income. The employee could prepare a statement of other income (apart from the current salary) and submit it to the employer for consideration in the payroll tax working.

Rule 26B of the IT Rules specifies that all other positive income could be disclosed to the employer and negative income (i.e. loss) could be disclosed only for house property income.

Ans: Hi Harish
As it seems, the new regime may be beneficial to your case but you could check that after accounting for your tax savings investments

Ans: Hi Dipankar
Standard deduction of Rs. 50,000 was not introduced in this budget and was there for all salaried individuals. However, till the last year this standard deduction was not available to those individuals who opted for the new tax regime,

The current budget proposal aims at extending this benefit to individuals opting for the new tax regime as well

Ans: Hi
You have not stated if you have any tax saving investment, which would change the entire decision of choosing the tax regime option.

Assuming that you have tax saving investment in the range of Rs. 0 - Rs. 200,000, you would have a tax savings in the range of Rs. 115,000 and Rs. 54,000. Hence it may be better to opt the new tax regime

Ans: Hi Kedarji
Based on your question, apparently on property records, your mother-in-law is the owner of the land. I do not wish to get into the legal heirship aspect of the land post your father-in-law's demise and hence i would restrict my answer within the perspective of your query.

As your MIL is the legal owner and she is the person selling the land, she will be the person liable to tax for the capital gain arising on sale of the NA land.

The distribution of the net sale proceeds to the 3 daughters could be treated as gift backed up with the relevant paper work such as executing the gift deed etc., to ensure that there is no further taxability to the 3 daughters

Ans: Hi
The rebate of tax under section 87A is on the total income that is taxable and hence even capital gain is included for that purpose

Ans: Hi Srinivasa
The slab rate of tax is applicable to all individuals opting for the new tax regime. However, individuals having income of upto Rs. 7 Lakhs could get a rebate of upto Rs. 25,000 and therefore pay Nil tax if they opt for the new regime. So essentially, the tax liability is always there but if the income is upto Rs. 7 Lakhs then you get the rebate and if the income exceeds Rs. 7 Lakhs then you get no rebate whatsoever and the tax based on the slab rate applies.

Ans: Hi Satya
Under the new tax regime, EPF is not taxable but a deduction for the contribution is not available

Ans: Hi Sunil
As a consultant, you could opt for the presumptive taxation provisions where dependent on the nature of your activity, you could get a straight knock from your income between the range of 50% to 94%. That is a substantial reduction in taxable income and hence the tax liability as well.

You could speak with your tax consultant to understand this aspect clearly.

Ans: Hi
Would depend on the quantum of income, tax saving investment made by you. It would be difficult to state the best option without comparison of numbers. With the availability of standard deduction (for salary), definitely new tax regime may become attractive.

Ans: Hi Mehul
A HUF cannot claim the benefit of rebate under section 87A with the enhanced limit of Rs. 7 Lakhs hence based on the tax saving investments of the HUF, the relevant tax (if applicable) would be levied