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Mihir

Mihir Tanna  |942 Answers  |Ask -

Tax Expert - Answered on Jul 08, 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
Asked by Anonymous - Jun 30, 2024Hindi
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For the FY 23-24, my income from salary is ?7,02,876 as per form 16. I also have interest income of ?9,120. I also sold mutual funds and had long term capital gains of ?87,983. I want to know as to how my total income and tax would be computed. I was under the impression that my salaries and interest income will be treated differently and will not be eligible for tax under the new tax regime and my long term capital gain will be exempted since it is less 1 lakh, thus resulting in nil income tax. Is it correct or not?

Ans: Assuming mutual fund redeemed are equity based scheme, tax on said redemption will be NIL. Tax on salary and interest will be Rs26,200 plus cess.

You can calculate tax at https://incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
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  |6290 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

..Read more

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