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Will I owe taxes next year with an income of 600,000 from investments?

Mihir

Mihir Tanna  |942 Answers  |Ask -

Tax Expert - Answered on Sep 04, 2024

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Chetan Question by Chetan on Sep 01, 2024Hindi
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Dear Sir, My annual income this year will be around 600000(getting income from FD interest and Short Term and Long term gains by redeeming my Mutual Funds and selling shares.) So whether I have to pay any tax next year as per New Tax regime?. Thanks

Ans: In case your income includes long term capital gains from the sale of listed equity shares or equity oriented mutual funds, then such tax on such capital gain is not eligible for section 87A rebate. Moreover, section 87A tax rebate is not available to non-residents
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |6302 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 09, 2024

Asked by Anonymous - Feb 04, 2024Hindi
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Hi, My projected total annual income for FY 23-24 is expected to be ? 9.6 Lacs out of which ? 6.25 would be capital gains from sale of equity mutual funds and rest would be through salary and interest income from bank and post office FD, RD and savings account. Till last year there was no tax liability as total Annual income was less. ( ? 3-3.5 Lacs ). As per calculation, capital gains tax on sale of equity mutual funds alone comes out to be ?52500 ( 10% of over and above ?1 Lac of capital gains) My query is whether I need to pay this tax of ?52500 arising on account of capital gains booked or the capital gains would be added along with other income ( salary+ interest) and then regular deductions / exemptions applicable as per Old / New tax regime would come into play so that the net tax liability becomes Zero for FY 23 - 24 as well?
Ans: Based on your scenario, here's how your capital gains tax will be calculated:

Capital Gains from Equity Mutual Funds:

You mentioned Rs. 6.25 lakh as capital gains from equity mutual funds.
Long-term capital gains (held for over 1 year) on equity mutual funds exceeding Rs. 1 lakh are taxed at 10% without indexation benefit.
Tax Calculation:

Taxable capital gains = Rs. 6.25 lakh (total capital gains) - Rs. 1 lakh (exempt limit) = Rs. 5.25 lakh
Capital Gains Tax:

You'll need to pay tax on Rs. 5.25 lakh at 10% = Rs. 52,500
Overall Tax Liability:

Here's how to determine your overall tax liability for FY 23-24:

Combine your Income Sources: Add your salary income, interest income from FDs, RDs, and savings account to the Rs. 52,500 capital gains tax.
Deductions and Exemptions: You can then factor in any deductions and exemptions you're eligible for under the Old or New tax regime (whichever offers a lower tax liability).
Net Tax Liability: After applying relevant deductions and exemptions, calculate your final taxable income. If the final taxable income falls below the minimum taxable limit, your net tax liability becomes zero.
Key Points:

Capital gains tax is calculated separately from your salary and interest income.
You can choose the tax regime (Old or New) that minimizes your overall tax liability. Explore both options using a tax calculator or consult a tax advisor for a more accurate assessment.
Remember, this is a general overview. Tax rules and exemptions can be subject to change. For a definitive assessment of your tax situation, consider consulting a qualified tax advisor who can consider all your income sources, deductions, and exemptions applicable to your specific circumstances.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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Ravi

Ravi Mittal  |298 Answers  |Ask -

Dating, Relationships Expert - Answered on Sep 16, 2024

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Hii sir ! This is ritika and I love a boy and we are in relationship since 7 years but there are some behavior of him he always have doubt on me that I am dating another boy he always says that start you screenshare in WhatsApp I even do because I don't want to lose him and he saw all of things of my phone yesterday he again asking for that and I do and there was a tab of instagram which was belongs to my roommate it was her I'd open in my chrome browser where she only wants to delete the I'd which she did from my phone these instagram thing happened approx one year ago but when he saw this I told him that was not mine but he continuously said I am cheater I cheated with him again he was like I know you have two mobile phones and you cheated with me. I love him soo much but he cannot try to accept that . Even I don't talk to my male classmate because he didn't want ki main kisi boy se baat karu Is it fair , am I cheater ? I love him unconditionally I support him in all his career or decision but again he was like I cheated with him we are in long distance relationship but I can't cheat him . Literally I am feeling depressed ????
Ans: Dear Ritika,

Please understand that you did nothing wrong. Why would you even question yourself? You know you never cheated. It's his issue that he cannot trust. Yes, in a relationship we all try to comfort our partners but that too should be to a certain extent. And, in that process, if your mental health is being compromised, I don't see how it's a healthy relationship.

I don't want to tell you what to do, but I would reassure you that YOU DID NOTHING WRONG. You don't need to prove yourself anymore. And I can also assure you that no matter what you do, he will still manage to find some flaws and doubt you. It's a typical behavior we see in some partners. You deserve peace, love, and above all, to be trusted.

Best Wishes.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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