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data/crypto_taxation.txt

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+Is Crypto ‘Currency’ Or An ‘Asset
+Crypto and NFTs were categorised as "Virtual Digital Assets", and Section 2(47A) was added to the Income Tax Act to define this term. The definition is quite detailed but mainly includes any information, code, number or token (not Indian or foreign fiat currency) generated through cryptographic means. In simple words, VDAs mean all types of crypto assets, including NFTs, tokens, and cryptocurrencies, but they will not include gift cards or vouchers.
+
+Is Crypto Taxed In India?
+Yes, gains from cryptocurrency are taxable in India. The government's official stance on cryptocurrencies and other VDAs was clarified in the 2022 Budget. 
+
+How Is Cryptocurrency Taxed In India?
+In India, cryptocurrencies are classified as virtual digital assets and are subject to taxation. 
+
+Gains made from trading cryptocurrencies are taxed at a rate of 30% (plus 4% cess) according to Section 115BBH. 
+Section 194S levies 1% Tax Deducted at Source (TDS) on the transfer of crypto assets from July 01, 2022, if the transactions exceed ₹50,000 (or even ₹10,000 in some cases) in the same financial year. 
+The crypto tax applies to all investors, whether private or commercial, who transfer digital assets during the year.
+The tax rate is the same for short-term and long-term gains, and it applies to all types of income earned by the investor.
+Therefore, the gains from trading, selling, or swapping cryptocurrency will be taxed at a flat 30% (plus a 4% surcharge), irrespective of whether the income is treated as capital gains or business income. 
+
+In addition to this tax, 1% TDS will also apply on the sale of crypto assets of more than Rs 50,000 (or Rs 10,000 in certain cases).
+
+Use our crypto tax calculator to calculate your taxes easily.
+
+Crypto Tax Highlights
+
+30% tax on crypto income as per Section 115BBH, applicable from April 1, 2022
+1% TDS on the transfer of VDAs as per Section 194S, applicable from July 1, 2022
+No deduction is allowed except for the cost of acquisition.
+Crypto Gains should be reported under Schedule VDA in the ITR.
+Which Crypto Transactions Are Liable To Tax In India?
+If you engage in any of the following transactions, you will be required to pay a 30% tax:
+
+Spending cryptocurrencies to purchase goods or services.
+Exchanging cryptocurrencies for other cryptocurrencies
+Trading cryptocurrency using fiat currency such as ₹(INR)
+Receive cryptocurrency as payment for a service
+Receiving cryptocurrency as a gift
+Mining cryptocurrency
+Drawing a salary in crypto
+Staking crypto and earning stake benefits
+Receiving Airdrops
+How To Calculate Tax On Crypto?
+Now that you know you'll have to pay a 30% tax on your profits from crypto, let us see how to calculate the profits.
+
+Gains are nothing but Sale Price - Cost Price. 
+
+Crypto Bookkeeping: 
+
+The computation of tax on crypto, when you have a large amount of transactions in different exchanges and wallets, will be quite complex. Thus one needs to implement crypto bookkeeping software to manage and consolidate all such transactions. This will help you generate reports like capital gain reports, Holding reports etc. It involves the following 
+
+Importing all transactions like deposits, withdrawals, Trades etc., from different exchanges and wallets.
+The software will automatically recognise transactions like deposits, withdrawals, staking income, trades etc.
+Pending entries for categorisation need to be classified. 
+The last stage is closing balance verification. This ensures that the closing balance, as per actual holdings, matches the books.
+See how much tax you are liable to pay on crypto gains.
+
+Understanding TDS On Crypto Transactions
+Tax Deducted at Source (TDS) aims to tax the crypto traders and investors as and when they carry out a transaction by deducting a certain percentage at the source. A buyer who owes a payment to the seller must subtract the TDS amount and forward it to the central government. Only the balance amount will be paid to the seller. In India, the TDS rate for crypto is set at 1%. Starting from July 01, 2022, the buyer will be responsible for deducting TDS at the 1% rate while making payment to the seller for the transfer of Crypto/NFT. If the transaction takes place on an exchange, then the exchange may deduct the TDS and pay the balance to the seller. Indian exchanges automatically deduct TDS, while individuals trading on foreign exchanges must manually deduct TDS and file their TDS returns.
+
+P2P Transactions: In P2P transactions, the buyer is responsible for deducting TDS and filing Form 26QE or 26Q, whichever is applicable. 
+Eg: Buying cryptocurrency using ₹(INR) over a P2P platform or international exchange.
+Crypto-to-Crypto Transactions: TDS will be applicable to both buyer and seller at 1%.
+Eg: Buying crypto with stablecoins
+Non-Applicability of 194S TDS on VDA: It is important to note that TDS under Section 194S is applicable at the time of purchase of VDA from an Indian Tax Resident only. Thus if you are Trading in an International exchange, DEX, you will be interacting with a non-resident or non-resident entity, then one can take a stand that Section 194S is not applicable.
+
+Tax On Airdrops
+An airdrop refers to the process of distributing cryptocurrency tokens or coins directly to specific wallet addresses, generally for free. Airdrops are done to increase awareness about the token and increase liquidity in the early stages of a new currency. Airdrops are taxed at 30%. Such airdrops are taxable under Income from other sources. 
+
+On What Amount Will The Airdrops Be Taxed? 
+Receiving crypto: Airdrops will be taxed on the value determined as per Rule 11UA, i.e. at the fair market value of the tokens as on the date of receipt on exchanges or DEXes. Tax will be levied at 30% on such value.
+
+Sell, swap, or spend them later: If you sell, swap or spend those tokens later, then a 30% tax will be levied on the gains made.
+
+E.g: 
+1) Let’s say Mr Bob receives 20,000 ABC tokens as Airdrop on April 01 2022, but these tokens do not trade either on exchanges or DEXs. Then, no tax will be levied.
+
+2) Now, let’s assume Mr Bob receives 20,000 ABC tokens as an Airdrop on April 01, 2022, too, and ABC tokens are traded (exchanging, buying, or selling) on exchanges or DEXes. On April 01, 2022, the ABC token price on the exchange is ₹10.
+
+In this case, the tax will be charged at 30% on Rs 2,00,000 (20,000* Rs 10).
+Now, if Mr Bob sells these tokens at Rs 5,00,000, then Rs 2,00,000 will be considered as a cost, and the balance of Rs 3,00,000 will be taxable at 30%.
+Tax On Mining Cryptocurrency
+Mining refers to the process of verifying and recording transactions on a blockchain network using powerful computers or specialised mining hardware. In a blockchain network, transactions are verified by a group of nodes or computers, called miners, who compete to solve complex mathematical puzzles. The first miner to solve the puzzle is rewarded with a certain amount of cryptocurrency, which varies depending on the network. 
+
+Mining income received will be taxed at a flat 30%. The cost of acquisition for crypto mining will be considered ‘Zero’ for computing the gains at the time of sale. No expenses such as electricity or infra cost can be included in the cost of acquisition. 
+
+On What Amount Will Crypto Mining Be Taxed? 
+Receiving crypto: Crypto assets received at the time of mining will be taxed on the value determined as per Rule 11UA, i.e. at the fair market value of the tokens as on the date of receipt on exchanges or DEXes. Tax will be levied at 30% on such value.
+
+Sell, swap, or spend them later: If you sell, swap or spend those assets later, a 30% tax will be levied on the gains made.
+
+Tax On Crypto Staking/Forging
+In the realm of cryptocurrencies, forging (or minting) refers to the process of generating new blocks in the blockchain using the Proof-of-Stake algorithm in exchange for rewards in the form of newly generated cryptocurrencies and commission fees.
+
+If you stake cryptocurrency, you may have to pay taxes on your earnings. The amount you earn from staking depends on the Annual Percentage Rate (APR) offered by the validator. For instance, if you stake 100 coins with a 10% APR, you will earn 10% interest every year.
+
+This income you earn from staking will be taxed at 30%. Additionally, when you sell your crypto asset, you will be liable to pay 30% Capital Gains Tax.
+
+In general, transferring your coins to a staking pool or wallet does not typically attract taxes. Additionally, moving assets between wallets is often considered tax-exempt. 
+
+Tax On Crypto Gifts
+Tax treatment on gifts differs depending on whether it is money, immovable property or movable property. In Budget 2022, VDAs were included within the scope of movable properties. Therefore, crypto gifts received will be taxed as ‘income from other sources’ at regular slab rates if the total value of gifts is more than Rs 50,000.
+
+Cryptos can be gifted either through gift cards, crypto tokens or crypto paper wallets. 
+Crypto received as gifts from relatives will be tax-exempt. However, if the value of the crypto gift from a non-relative exceeds Rs 50,000, it becomes taxable. Gifts received on special occasions, through inheritance or will, marriage, or in contemplation of death, are also exempt from taxes.
+
+You can use ClearTax's Crypto Tax feature to calculate taxes on cryptocurrencies received as gifts.
+
+clear tax crypto 
+Loss From Crypto Transactions
+As per Section 115BBH, losses incurred in crypto cannot be offset against any income, including gains from cryptocurrency. So, a crypto investor cannot off set previous year losses from a crypto asset while filing ITR this year.
+
+Moreover, Indian investors in cryptocurrency are not permitted to claim expenses related to their crypto activities, except for the acquisition cost or purchase cost.
+
+Eg: Mr X purchased Rs 60,000 worth of Bitcoins and later sold it for Rs 80,000. He also bought Ethereum worth Rs 40,000 and sold them for Rs 30,000. The exchange charged a trading fee of Rs 1,000. The tax on both these transactions shall be computed as under:
+
+Currency
+
+Buy (in Rs)
+
+Sell (in Rs)
+
+Net Profit or (Loss)
+
+Tax Rate
+
+Tax Amount
+
+Bitcoin
+
+60,000
+
+80,000
+
+20,000
+
+30%
+
+6,000
+
+Ethereum
+
+40,000
+
+30,000
+
+(10,000)
+
+30%
+
+-
+
+Total
+
+ 
+
+ 
+
+ 
+
+ 
+
+6,000
+
+Here, Rs 10,000 loss is not allowed to be offset against the gains of Rs 20,000. The entire Rs 20,000 income is taxed at 30%. Also, the trading fee of Rs 1,000 is not allowed as a deduction.
+
+Disclosure Of Crypto Assets In Schedule Of Assets And Liabilities 
+Ministry of Corporate Affairs (MCA) has made it mandatory to disclose gains and losses in virtual currencies in notes to accounts of Company Financial statements. Also, the value of cryptocurrency as of the balance sheet date is to be reported. Accordingly, changes have been made in schedule III of the Companies Act starting from 1 April 2021. This mandate can be considered as the first move of the government towards regulating cryptocurrencies.  
+
+Please note that this mandate is only for companies, and no such compliance is required from individual taxpayers. However, reporting and paying taxes on the gains of cryptocurrency is a must for all. 
+
+For Individuals, whether crypto assets need to be declared in the Asset and liability schedule or not is an unanswered question. In Schedule Asset and Liability, currently, there is no specific field for disclosure of your Crypto holdings.
+
+Summary of Crypto Transactions and the Applicable Rate
+Transaction
+
+Tax Treatment
+
+Buying crypto
+
+1% Tax Deducted at Source (TDS) by the exchange (excluding international & P2P trades)
+
+Selling crypto
+
+30% tax on any capital gains
+
+Trading crypto for crypto
+
+30% tax on any gains
+
+Holding crypto
+
+Generally tax-free, but subject to capital gains tax upon disposal
+
+Moving crypto between your own wallets
+
+Generally tax-free; ensure proper documentation for audit trails
+
+Airdrops of crypto
+
+Considered as income at your applicable tax rate; 30% tax if later sold
+
+Hard forks
+
+Income Tax at your applicable tax rate upon receipt; 30% tax if later sold
+
+Gifts of crypto
+
+The recipient will be subject to tax; exemptions is for gifts from close family
+
+Donating crypto
+
+Only cash donations are tax deductible; any perceived profits may be subject to 30% tax
+
+Mining rewards
+
+Income Tax at your individual tax rate; 30% tax if later sold
+
+Staking rewards
+
+Income Tax at your individual tax rate; 30% tax if later sold
+
+Plan Your Taxes In Advance
+Save Taxes with Tax Planner Tool
+Try Now!
+Timeline Of Crypto Tax Regulations In India 
+Dates
+
+Events
+
+2013
+
+A circular was released by the RBI which advised investors to exercise caution when considering speculative investments, including cryptocurrencies.
+
+2018
+
+Despite the RBI's numerous warnings, the Indian crypto markets continued to gather momentum and attracted a record number of users. In order to prevent this trend from taking a huge leap, the RBI released a circular in April 2018, restricting banking facilities to the crypto exchanges.
+
+2020
+
+After a nearly two-year legal battle, the Indian Supreme Court ultimately overturned RBI's order, ruling that it was unconstitutional to prohibit trading in cryptocurrencies without any regulatory framework in place. This landmark decision played a significant role in igniting the crypto boom of 2020 and marked a crucial turning point for the struggling Indian crypto market.
+
+2022
+
+Union Budget 2022 introduced crypto tax regulations, most important of them being a flat 30% tax on crypto and 1% TDS on sell transactions.
+
+Frequently Asked Questions
+How much tax is charged on cryptocurrency in India?
+
+In India, gains from cryptocurrency are subject to a 30% tax (along with applicable surcharge and 4% cess) under Section 115BBH.
+
+How to calculate taxes on cryptocurrency?
+
+As discussed above, the taxation of crypto gains is determined by the type of transaction. You can use our crypto tax calculator to calculate your taxes accurately and with ease.
+
+How do you calculate 30% tax on crypto?
+
+30% crypto tax will be levied on the income you made from cryptocurrency which can be calculated as:
+Sale Price - Cost Price = Income.
+
+How to report cryptocurrency on tax return?
+
+For the financial year 2023-24 and assessment year 2024-25, you will need to declare your cryptocurrency taxes using either the ITR-2 form (if reporting as capital gains) or the ITR-3 form (if reporting as business income). The new ITR forms include a specific section 'Schedule VDA' for reporting cryptocurrency gains or income. 
+
+What is 1% TDS on crypto? Who is required to pay TDS on crypto?
+
+Refer to this page for a detailed explanation on TDS on Cryptocurrency.

data/tax_laws1.txt

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+A person ticks off numerous milestones throughout his lifetime. Common ones include graduation, first job, wedding, family, etc. Apart from these, another significant milestone that most of us tend to come across is paying off income tax for the very first time.
+
+As soon as the income tax return filing date steps closer, people somehow get a tad conscious as many deem it to be a little daunting task. And if you are a first-time taxpayer, it may even seem like a nightmare to you.
+
+Thus, for all such taxpayers who look forward to filing the tax for the first time, we have jotted down the basics of income tax in this segment, which shall help you do the groundwork.
+
+From basic income tax knowledge to understanding income tax in India, get yourself oriented with all the significant terminologies to learn income tax basics easily with our informative guide to income tax for beginners.
+
+What are ‘Financial Year’ and ‘Assessment Year’?
+To understand how to file income tax return, it is first necessary to know the primary difference between the financial year and the assessment year:-
+
+Financial Year
+The Financial Year is also called the Previous Year. It is the 12 months cycle that begins in April and ends in March of the next year. Irrespective of your employment start date, the tax year is fixed from April to March.
+
+Understand this with an example,
+
+Assume you joined a company on October 22, 2021. Your first tax year would be April 2021 to March 2022. You will be taxed on your income from October 22, 2021, until March 31, 2022.
+
+Thus, the tax year or financial year is the year for which the tax is paid.
+
+Assessment Year
+The assessment year is the year after the previous year. In simple words, it is the year in which you will file your return in the prior year.
+
+So, considering the example mentioned earlier, your previous year or tax year was 2021-22. Thus, your assessment year will be 2022-23, as you will be filing your income tax return between April 1, 2021, and September 30, 2022 (generally).
+
+Understand Your Salary Component
+It is quite essential to understand your entire salary structure on the basis of which you are supposed to file your income tax return. Your salary slip consists of all the information, such as your basic salary, house rent allowance, special allowance, etc., based on your salary structure and the company’s policy.
+
+It also contains details regarding tax deducted, professional tax, employee provident fund, etc. The difference between these two is what gets credited to your bank account as salary.
+
+Note you can use a salary calculator, too, while assessing your salary.
+
+Income on Which Tax Needs to be Paid
+Along with your salary, as an individual, you will be entitled to some interest income generated from your savings or deposits with banks and other similar institutions.
+
+The sources of income on which you will be paying taxes can be split into the following –
+
+Salary Income – This includes your salary, allowances, leave encashment, and another cash component that you may receive for rendering your services to an organization.
+
+Income from House Property – This includes any income you may generate from renting an owned property.
+
+Income from Capital Gain – Under this head, all the income that arises from transactions in capital assets such as shares/mutual funds are included.
+
+Income from Business or Profession – If you are conducting any business or profession along with your job, then the income from such activity will be your income from business or profession.
+
+Income from Other Sources – This includes interest income in a savings account or interest income from deposits with the bank, gifts, etc.
+Deductions
+A deduction can be considered a tax benefit that can be used to decrease your taxable income. A deduction is an amount that Income Tax Department allows you to diminish your Income, which ultimately reduces your tax liability.
+
+It can be calculated as –
+
+Sum of all income = Gross income
+
+Gross Income – Deductions = Taxable Income
+
+Thus, higher is your deduction; lower is your tax liability. Deductions are allowed under section 80 (Section 80C to 80U) of the Income Tax Act.
+
+Tax Exemptions
+You can call tax exemptions those monetary exclusions that can assist in reducing your taxable income.
+
+Such exemptions help you avail tax reliefs, reduce tax rates or even ensure that tax is applicable on specific parts of your income only.
+
+Understand this with an example,
+
+Suppose you pay rent for your house. Now, you can avail yourself of an exemption on your House Rent Allowance (HRA) which is mainly calculated according to your salary. So, while calculating your taxable income, a particular portion of your HRA gets exempted from the gross income.
+
+80C Is Your Best Friend
+Under section 80C, you can reduce up to an amount of Rs 1,50,000 from your gross income. The commonly used investment vehicles under section 80C are –
+
+Public Provident Fund
+Employee Provident Fund
+Tax saving fixed deposit
+Equity-linked savings scheme
+Insurance premium
+Tax Deducted at Source (TDS)
+Tax Deducted at Source is the tax amount that is deducted and deposited on the taxpayer’s behalf by the employer with the Income Tax Department. TDS is calculated by the employer based on estimated Income tax as suggested by the employee.
+
+The rate at which tax is deducted is dependent on the income tax slab you belong to.
+
+Similarly, interest earned on fixed deposits is also liable for TDS. Typically, the banks deduct 10% of the interest income as TDS as they are not aware of your tax slab. However, the bank will not deduct any tax provided Form No. 15H/15G (as the case may be) is submitted to the bank by the depositor.
+
+However, if you have mentioned your Permanent Account Number (PAN), the bank may deduct 20% of the income as well.
+
+It is a significant element in the income tax filing procedure as it is a measurement technique that the Income Tax Department imposes to secure payment of taxes within the due time frame.
+
+Advance Tax
+Advance Tax is the sum of income tax that is paid in much advance instead of a lump-sum payment at the time of filing the ITR. This is paid mainly by businessmen and professionals.
+
+The due dates for paying these tax instalments are fixed by the Income Tax Department of India. The dates and tax rates are mentioned below-
+
+On or Before 15th June: 15%
+On or Before 15th September: 45%
+On or Before 15th December: 75%
+On or Before 15th March: 100%
+Self-assessment Tax
+Self-assessment tax is the balance tax that is supposed to be paid by the taxpayer on his assessed income after advance tax and TDS have been taken into account before filing the return of income.
+
+Categories of Tax Payers
+Residents and non-residents (below 60 years of age)
+Senior citizens (60 and above years but below 80 years of age)
+Resident super senior citizens (above 80 years of age)
+Calculating Tax Payable
+Once your taxable income is known, you will be able to compute the tax that needs to be paid.
+
+Income Slab
+
+Old Tax Regime
+
+tax Regime 
+
+(New until 31st March 2023)
+
+New Tax Regime 
+
+(From 1st April 2023)
+
+Rs 0 - Rs 2,50,000
+
+-
+
+-
+
+-
+
+Rs 2,50,000  - Rs 3,00,000
+
+5%
+
+5%
+
+-
+
+Rs 3,00,000 - Rs 5,00,000
+
+5%
+
+5%
+
+5%
+
+Rs 5,00,000 - Rs 6,00,000
+
+20%
+
+10%
+
+5%
+
+Rs 6,00,000 - Rs 7,50,000
+
+20%
+
+10%
+
+10%
+
+Rs 7,50,000 - Rs 9,00,000
+
+20%
+
+15%
+
+10%
+
+Rs 9,00,000 - Rs 10,00,000
+
+20%
+
+15%
+
+15%
+
+Rs 10,00,000 - Rs 12,00,000
+
+30%
+
+20%
+
+15%
+
+Rs 12,00,000 - Rs 12,50,000
+
+30%
+
+20%
+
+20%
+
+Rs 12,50,000 - Rs 15,00,000
+
+30%
+
+25%
+
+20%
+
+>Rs 15,00,000
+
+30%
+
+30%
+
+30%
+
+Note, 4% will be levied as Health and Education Cess on income tax amount computed on taxable income.
+
+Once your final tax is computed, you are required to subtract the TDS from the tax liability.
+
+Tax to be Paid = Tax Liability – TDS
+
+Thus, the remaining amount after deducting TDS from tax liability needs to be paid to the Income Tax Department while filing returns.
+
+Documents Required to File Income Tax (ITR) in India
+If you are filing the income tax return online, there is a set of documents that you need to fill out and submit. The documents may vary according to the source of income. The documents are-
+
+Salaried Individual– Form 16, 16A, 26AS, Receipt of Rent for HRA, Payslips, Investment made under Section 80C, 80D, 80E, and 80G.
+
+Capital Gains– ELSS, SIPs, Mutual Fund statement, Debt fund, sale and purchase of Equity Funds. Purchase/selling price, details of capital gains, details of registration if any house property is sold. A Statement of capital gains through selling shares and stock trading.
+
+House Property– PAN Card details, Property address, Information of co-owner, Certificate of Home Loan interest.
+
+Other Sources- Bank details, information of interest received from tax-saving or corporate bonds.
+Note on Standard Deduction
+A standard deduction of Rs.50,000 is available from gross total income. You can claim this tax benefit irrespective of the amount spent on Transport and Medical Allowance.
+
+The tedious process of income tax return filing and claiming deductions has now become much more simplified with the introduction of e-filing. So, being a responsible citizen of India, make sure you fulfil your obligation and file your returns within the due period.
+
+Mutual funds have long been a popular investment avenue due to their potential for wealth creation and diversification benefits. However, NRIs investing in mutual funds need to navigate through a specific set of tax regulations and provisions that apply to them.
+
+Understanding the intricacies of NRI taxation of mutual funds is vital to optimising returns and complying with the tax laws of the home country and India.
+
+In this blog, we will delve into the nuances of NRI taxation of mutual funds, providing insights and guidance to help NRIs make informed investment decisions and ensure tax compliance.
+
+Synopsis
+NRIs can invest in Indian Mutual Funds following Foreign Exchange Management Act (FEMA) regulations. They need to set up an NRE (Non-resident External) or NRO (Non-resident Ordinary) account. After this, they must comply with KYC regulations. With an active bank account and completed KYC, NRIs can proceed to invest in Mutual Funds in India.
+
+Some Mutual Fund houses may impose restrictions on NRIs from the USA and Canada due to compliance obligations related to the Foreign Account Tax Compliance Act (FATCA). However, some fund houses permit these NRIs to invest under specific conditions and via offline transactions.
+
+NRIs can also benefit from potential currency appreciation, resulting in increased profits when the rupee value appreciates against their resident country's currency.
+
+Tax Implications
+NRIs investing in mutual funds in India need to consider the following tax implications:
+
+Tax Deducted at Source (TDS) 
+NRIs are subject to Tax Deducted at Source (TDS) when redeeming mutual funds, with the specific TDS rate determined by the scheme type (equity or non-equity) and the duration of holding the funds.
+
+ Profits earned from the sale of a mutual fund with a holding period of one year or less.
+
+ Profits earned from the sale of a mutual fund with a holding period of more than one year.
+Particulars
+
+TDS on Short-term Capital Gains
+
+TDS on Long-term Capital Gains
+
+TDS on Distributed Income under IDCW Option
+
+Equity Mutual Funds
+
+15%
+
+10%
+
+20%
+
+Other than Equity Oriented Fund
+
+30%
+
+Listed - 20% with indexation
+
+Unlisted - 10% without indexation
+
+20%
+
+The TDS is charged at the highest applicable rate. If the NRI falls in a lower tax slab, they are eligible for a refund when filing their returns.
+
+Capital Gains Tax
+The tax rate for capital gains on mutual funds depends on the type of scheme and the holding period.
+
+Particulars
+
+Tax on Short-term Capital Gains
+
+Tax on Long-term Capital Gains
+
+Equity Mutual Funds
+
+15%
+
+Gains exceeding Rs. 1 lakh - 10% without indexation benefit
+
+Other than Equity Oriented Fund
+
+Taxed based on the income tax bracket
+
+Listed - 20% with indexation
+
+Unlisted - 10% without indexation
+
+NRIs paying higher TDS than their lower tax slab can claim a refund when filing taxes. TDS deducts income tax at the highest rate initially; so if an NRI's tax slab is lower, they can reclaim the extra tax through refunds.
+
+Tax Return of Income
+NRIs are not required to file a return of income if their total income consists only of investment income or long-term capital gains with appropriate TDS deductions. 
+
+Filing returns in India also has its benefits. If your income falls in a lower tax slab, you are eligible for a refund on the TDS deduction when filing returns.
+
+Taxation of Dividends
+Dividend received from dividend schemes - equity as well as non-equity will be considered as income of the year and will be taxed as per the applicable tax slab rate. 
+
+Tax Benefits 
+Here are some of the key tax benefits an NRI can avail when investing in Mutual Funds -
+
+1) Double Taxation Avoidance Agreement (DTAA)
+DTAA is a treaty signed between two countries to prevent double taxation of the same income for residents. Under DTAA, gains from investments in India are taxed only in one country, depending on the terms of the agreement.
+NRIs can claim the benefit of taxes and TDS deducted in India against their tax liability in their country of residence.
+This deduction can be claimed by providing certain documents to the deductor, which can include a self-declaration cum indemnity format and a copy of citizenship/ PIO Proof. 
+Visit https://incometaxindia.gov.in/pages/international-taxation/dtaa.aspx for more information.
+
+2) Section 80C Deduction
+By investing in ELSS or Equity Linked Saving Schemes, tax benefits can be availed of under Section 80C, up to Rs 1,50,000.
+Key Terms to Remember About Mutual Funds Taxation for NRIs
+Here are some of the significant terminologies to take a note of-
+
+  Capital Gains Tax is a tax levied on the profit earned from selling certain assets like property or investments. It is categorised into Long-Term Capital Gains (LTCG) or Short-Term Capital Gains (STCG) based on the holding period.
+TDS is a mechanism in which the payer deducts a certain percentage of tax from the payment made to the recipient. It is submitted to the government on behalf of the recipient to ensure tax compliance and revenue collection.
+This refers to the profit obtained from the sale of certain assets held for a specified period. The holding period varies with the asset. It is subject to a different tax rate and benefits like indexation, depending on the asset type.
+It pertains to the profit gained from the sale of assets held for a short duration. It is taxed at a different rate compared to long-term gains.
+Indexation is a technique used to adjust the cost of acquiring an asset for inflation. It helps reduce the tax burden on long-term capital gains by considering the effect of inflation on the asset's original purchase price.
+IDCW (Income Distribution Cum Capital Withdrawal) is a dividend payout option in mutual funds where unitholders receive both investment profits (also known as income distribution) and and some of their invested money back at regular intervals.
+ These are mutual funds or funds that predominantly invest in equity shares of companies.
+
+These funds are mutual funds that primarily invest in assets other than equities, such as debt instruments.
+Conclusion
+Understanding the taxation of mutual funds for NRIs in India is crucial for making informed investment decisions and ensuring compliance with tax laws.
+
+It is important to stay updated on the provisions and benefits of the DTAA to optimise investment returns and fulfil tax obligations effectively.
+
+Knowledge of the tax implications makes it possible to navigate the investment landscape with confidence and maximise financial outcomes.
+
+You can also refer to AMFI (Association of Mutual Funds in India) guidelines on Mutual Fund Taxation : https://www.amfiindia.com/investor-corner/knowledge-center/tax-corner.html.
+
+The Income Tax Department in India levies income taxes on people according to the tax bracket they fall under. Taxpayers are constantly looking for ways to pay no income tax. However, they do not benefit from salary optimization. As a result, your tax obligations increase along with your income.
+
+Fortunately, there are several ways to lower your tax obligation under Indian income tax laws. Tax-saving investments are one of the best and most profitable ways to reduce your tax burden.
+
+Read this blog if you want to pay no tax on 10 lakh income. This blog provides various pieces of advice on tax planning for salaries above 10 lakhs.
+
+Income Tax Slabs for Individuals Under the Old Vs New Income Tax Regime
+First, let us examine the various tax structures and how to select between the old and new tax structures.
+
+The income tax slab rates for the old and new income tax systems are as follows-
+
+Income Tax Slabs
+
+ 
+
+How to Reduce Tax on 10 Lakhs Salary
+You should understand your salary structure to save more on income tax for 10 lakhs.
+
+A salary qualifies for a variety of grants and tax exemptions. The portion of salary subject to taxation and not covered by any exemptions is known as Taxable Income. As a result, your salary component may also include different tax-exempt benefits. Therefore, your taxable income will be the balance of your salary.
+
+Thus-
+
+Salary - Exemptions = Taxable Salary Income
+Taxable Salary Income - Deductions = Net Taxable Income
+Therefore, maximizing Exemptions and Tax Deductions can reduce your Tax Burden.
+
+You may also want to know How to Save Tax in India?
+Salary Exemptions Permitted Under Income Tax
+Several salary components qualify for Tax Exemptions, including-
+
+S.No.
+
+Salary Element
+
+Taxability
+
+1.
+
+Basic Salary
+
+Completely-Taxable
+
+2.
+
+Dearness Allowance
+
+Completely-Taxable
+
+3.
+
+HRA or House Rent Allowance
+
+Tax Exemption Up to A Specific Extent
+
+4.
+
+LTA or Leave Travel Allowance
+
+Exemption of Travel Ticket Costs for 2 Trips in 4 years Under 10(5)
+
+5.
+
+Mobile/Internet Allowance
+
+An Exemption is Allowed If Utilized Primarily for Office Purposes Along with Submitted Proofs or Bills
+
+6.
+
+Education Allowance for Children
+
+Per Child, Rs 4800 and a Maximum of 2 Children
+
+7.
+
+Food Allowance
+
+Rs 50 Per Meal and a Maximum of 2 Meals a Day
+
+8.
+
+Standard Deductions
+
+Rs 50,000 Will be Given to Everyone Without Restrictions
+
+9.
+
+Professional Tax
+
+It varies from State to State but Typically is Rs 2,400
+
+Salary Deductions Permitted Under Income Tax
+If you are wondering how to save tax for salary above 10 lakhs income, understand that several salary components qualify for Tax Deductions when you plan your taxes for a salary of more than Rs 10 lakhs, including-
+
+S.No.
+
+Salary Element
+
+Taxability
+
+1.
+
+On Policy Premium of Your Health Insurance (Under Section 80D)
+
+Tax Deductions of Rs 25,000 for you, your Spouse, and any dependent children and Rs 25,000 for Parents, along with Rs 50,000 if aged 60 and above
+
+2.
+
+On Loan for Higher Education (Under Section 80E)
+
+Loans are taken for the higher education of you, your Spouse, your dependent Children, or a Student over whom you have legal custody and are subject to an interest deduction for 8 years beginning with the year of repayment
+
+3.
+
+Charity Donations (Under Section 80G)
+
+50%-100% of the amount that qualifies
+
+4.
+
+Investments are Made in Tools of Tax Saving (Under Section 80C)
+
+A yearly tax benefit of Rs 1,50,000. You have a variety of assets to choose from, including the Employees Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), Sukanya Smriddhi Yojana (SSY), National Savings Certificate (NSC), Fixed Deposit for 5 Years, and more
+
+5.
+
+On Disabled Dependent Treatment Cost (Under Section 80DD)
+
+You are eligible for tax relief of Rs 75,000 on a 40% disability and Rs 1,25,000 on an 80% disability if you have dependents with disabilities for whom you pay medical expenses
+
+6.
+
+Deductions are Available on Home loans
+
+Deductions of up to Rs 1.5 lakhs in Principal Amount under Section 80C and up to Rs 2 lakhs in Interest Amount under Section 24b
+
+7.
+
+Life Insurance Policy Maturity Amount
+
+The maturity profits are tax-exempt if the sum assured is 20% for policies issued before April 1, 2012; 10% for policies issued after April 1, 2012; and 15% for policies issued for people with disabilities or diseases after April 1, 2013
+
+How to Save Tax for Salary above 15 Lakhs
+To save tax for salary above 15 lakhs, you can get a deduction under various sections of the Income Tax Act, by investing in various investment options. It can be done by opting for ELSS mutual funds, ULIP, EPF, Term plan insurance, etc.
+
+Conclusion
+In conclusion, choosing the old tax system and utilizing all available deductions and exemptions on tax-saving investments is the best way to reduce your tax liability for a salary above Rs. 10 lakhs. Alternatively, you can file your income tax return using the new tax system. However, you cannot take advantage of any carried-forward losses or tax-saving investment deductions once chosen. Thus, carefully considering all components of your income is recommended.

data/tax_laws2.txt

@@ -0,0 +1,730 @@
+What’s New In Income Tax
+Interim Budget 2024 -
+
+The budget maintained the existing tax rates for both direct and indirect taxes. 
+Taxpayers with income up to Rs 7 lakh have no tax liability.
+Finance Minister Nirmala Sitharaman also withdraws 'tax dispute' up to Rs 25,000 for the period up to the financial year 2009-10, Rs 10,000 for financial years 2010-11 to 2014-15.
+Budget 2023 Updates
+
+For individuals with income up to Rs 7 lakh, a tax rebate 
+The new tax slabs under the new tax regime will be:
+Income Slabs
+
+Tax Rates
+
+up to Rs 3 lakh
+
+Nil
+
+Rs 3 lakh- Rs 6 lakh
+
+5%
+
+Rs 6 lakh-Rs 9 lakh
+
+10%
+
+Rs 9 lakh-Rs 12 lakh
+
+15%
+
+Rs 12 lakh- Rs 15 lakh
+
+20%
+
+Above Rs 15 lakh
+
+30%
+
+Under the new tax regime, salaried employees and pensioners can claim a standard deduction of Rs 50,000. 
+Under the new tax regime, the highest surcharge has been reduced to 25% from 37% for people earning more than Rs 5 crore. This move brings down their tax rate from 42.74% to 39%.
+The new IT regime will be the default tax regime. However, taxpayers can opt out of the new regime before the due date for filing the IT returns for the respective assessment year.
+Leave encashment for non-government employees has been increased to Rs 25 lakh from Rs 3 lakh.
+TDS rate reduced to 20% from 30% on withdrawal of EPF.
+Click here to read all highlights on Budget 2024
+
+Browse By Topics
+
+House Property
+
+Business, Professional & Freelance
+
+Efiling Income Tax Return
+
+Income Tax Refunds
+
+Paying Tax Due
+
+Salary Income
+
+Capital Gains Income
+
+Other income sources
+
+Advance Tax
+
+NRI
+
+HUF
+
+Income Tax Notices
+ 
+What Is Income Tax?
+Income tax is a type of tax that the central government charges on the income earned during a financial year by individuals and businesses. Taxes are sources of revenue for the government. The government utilises this revenue for developing infrastructure, providing healthcare, education, subsidies to the farmer/agriculture sector and other government welfare schemes. 
+
+Taxes are mainly of two types: direct taxes and indirect taxes. Tax levied directly on the income earned is called a direct tax; for example, Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year.
+
+Direct Taxes are broadly classified as :
+
+Income Tax – This is taxes an individual, a Hindu Undivided Family (HUF), or any taxpayer other than companies pay on the income received. The law prescribes the rate at which such income is taxable.
+Corporate Tax - This is the tax paid on the company's taxable income. Here again, a specific tax rate for corporations has been prescribed by the income tax laws of India.
+Don't fall behind your taxes!
+With ClearTax's 3-step filing, get your taxes done early and enjoy peace of mind.
+File Now 
+Use ITR55 for flat 55% Off
+Who Should Pay Income Tax? – Types Of Taxpayers
+According to the Income Tax Act, everyone in India, whether resident or nonresident, has to file income tax returns. Currently, tax is payable if the income exceeds Rs 3 lakh in a financial year. The Income Tax Act has classified taxpayers into various categories. Different tax rules apply to different types of taxpayers. 
+
+   Below are the categories of taxpayers: 
+
+Individuals
+Hindu Undivided Family (HUF)
+Firms
+Companies
+Association of Persons(AOP)
+Body of Individuals (BOI)
+Local Authority
+Artificial Judicial Person
+Further, Individuals and HUFs are classified as residents and nonresidents. Resident individuals are liable to pay tax on their global income in India, i.e. income earned in India and abroad. Meanwhile, those who qualify as nonresidents must only pay taxes on income earned or accrued in India. The residential status has to be determined separately for tax purposes for every financial year based on the individual tenure of stay in India. Resident Individuals are further classified into the mentioned categories for tax purposes:
+
+Individuals less than 60 years of age
+Individuals aged more than 60 but less than 80 years
+Types Of Income – What Are The 5 Heads Of Income?
+Everyone who earns or gets an income in India is subject to income tax (Yes, be it a resident or a non-resident of India). For simpler classification, the Income tax department breaks down income into five main heads:
+
+Head of Income
+
+Nature of Income covered
+
+Income from Other Sources
+
+Income from savings bank account interest, fixed deposits, and winning in lotteries is taxable under this head of income. 
+
+Income from House Property
+
+Income earned from renting a house property is taxable under this head of income.
+
+Income from Capital Gains
+
+Surplus Income from the sale of a capital asset such as mutual funds, shares, house property, etc, is taxable under this head of Income.
+
+Income from Business and Profession
+
+Profits earned by self-employed individuals, businesses, freelancers or contractors and income earned by professionals like life insurance agents, chartered accountants, doctors and lawyers who have their own practice, and tuition teachers are taxable under this head.
+
+Income from Salary
+
+Income earned from salary and pension is taxable under this head of income.
+
+Taxpayers and Tax Slabs
+Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax calculated on taxable income, the individual, HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People's income grouped into blocks are called tax brackets or tax slabs. And each tax slab has a different tax rate. The rate at which the tax is charged increases as the taxable income increases. 
+
+What is the Existing/Old Income Tax Regime?
+The old tax regime provides three slab rates for income tax levy, which are 5%, 20%, and 30% for different income brackets. Individuals can continue with the old taxation regime, and they can claim the following deductions: 
+
+Deductions of allowances like Leave Travel Concession (LTC), House Rent Allowance (HRA), and specific other allowances.
+Deductions for tax-saving investments as per Section 80C (LIC, PPF, NPS, etc) to 80U can be claimed.
+Standard deduction of Rs 50,000.
+Deduction for interest paid on home loan.
+Tax slab rates applicable for Individual taxpayers below 60 years for the Old tax regime are as below: 
+
+Income Range
+
+Tax rate
+
+Tax to be paid
+
+Up to Rs 2,50,000
+
+0
+
+No tax
+
+Rs 2.5 lakhs - Rs 5 lakhs
+
+5%
+
+5% of your taxable income
+
+Rs 5 lakhs - Rs 10 lakhs
+
+20%
+
+Rs 12,500+20% on income above Rs 5 lakh
+
+Above 10 lakhs
+
+30%
+
+Rs 1,12,500+30% on income above Rs 10 lakh
+
+There are two other tax slabs for two other age groups: those 60 and older and those above 80. 
+
+A word of note: People often misunderstand that if they earn, let's say, Rs12 lakh, they will be paying a 30% tax on Rs.12 lakh, i.e. Rs 3,60,000. This is incorrect. A person earning Rs 12 lakh in the progressive tax system will pay Rs 1,12,500 + Rs 60,000 = Rs 1,72,500. 
+
+Income Tax Slabs Under New Tax Regime
+In the 2020 budget, a new tax regime was introduced with lower tax rates and limited deductions/exemptions for Individuals and HUFs. Hence, many taxpayers did not opt for the new tax regime. However, to encourage taxpayers to adopt the new tax regime in Budget 2023, the income tax slabs under the new tax regime for FY 2023-24 (AY 2024-25) are revised as follows:
+
+New tax regime FY 2023-24   
+(After budget)
+
+New tax regime FY 2022-23   
+(Before budget)
+
+Income up to Rs 3 lakh
+
+Nil
+
+Up to Rs 2.5 lakh
+
+Nil
+
+Rs 3 lakh to Rs 6 lakh
+
+5%
+
+Rs 2.5 lakh to Rs 5 lakh
+
+5%
+
+Rs 6 lakh to Rs 9 lakh
+
+10%
+
+Rs 5 lakh to Rs 7.5 lakh
+
+10%
+
+Rs 9 lakh to Rs 12 lakh
+
+15%
+
+Rs 7.5 lakh to Rs 10 lakh
+
+15%
+
+Rs 12 lakh to Rs 15 lakh
+
+20%
+
+Rs 10 lakh to Rs 12.5 lakh
+
+20%
+
+Income above Rs 15 lakh
+
+30%
+
+Rs 12.5 lakh to Rs 15 lakh
+
+25%
+
+ 
+
+ 
+
+Income above Rs 15 lakh
+
+30%
+
+Most of the deductions and exemptions are not allowed if the taxpayers opt for the New Tax regime. However, the exemptions and deductions available under the new regime are:
+
+Transport allowances in case of a specially-abled person.
+Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
+Any compensation received to meet the cost of travel on tour or transfer.
+Daily allowance received to meet the ordinary regular charges or expenditures you incur on account of absence from his regular place of duty. 
+Exceptions To The Income Tax Slab
+One must remember that not all income can be taxed on a slab basis. Capital gains income is an exception to this rule. Capital gains are taxed depending on your asset and how long you’ve owned it. The holding period would determine if assets are long-term or short-term. The holding period to determine the nature of assets differs for different assets. A glance at the holding period, the nature of the assets and the tax rate for each are given below.
+
+Financial Year
+The financial year is a one-year period that the taxpayers use for accounting and financial reporting purposes. It is the year in which the income is earned. According to the Income Tax Act, such a period begins from 1st April of the calendar year to 31st March of the next calendar year. It is abbreviated as “FY”. For example, the financial year starting from 1st April 2023 and ending on 31st March 2024 can be written as FY 2023-24.
+
+In simple words, a financial year is a year in which the income of a person is earned.  
+
+Assessment Year
+The one year from 1st April to 31st March starting immediately after the financial year is termed an assessment year. This period is the assessment year because all the taxpayers have to evaluate their income earned in the financial year and pay taxes this year. For example, for incomes earned during the FY 2023-24, the assessment year will be AY 2024-25.
+
+In simple words, the income earned in the financial year will be assessed to tax in the assessment year. 
+
+Assessee
+The assessee is a person or a group who assesses his/her income and pays tax as per the Income Tax Act. The assessee can be an individual, a partnership firm, a company, an Association of Persons (AOP), a Trust, etc.
+
+What is PAN?
+PAN is an abbreviation for the Permanent Account Number. It is a unique 10-digit alphanumeric digit issued by the Income Tax Department to Indian taxpayers. All the tax-related transactions and information of a person are recorded against their unique permanent account number. When the person has to pay advance tax or self-assessment tax, they must mention the PAN number. 
+
+Also, an individual submits his PAN to certain entities like banks, mutual fund companies, etc. The financial information from such entities goes to the income tax department via PAN. This allows the taxman to link all tax-related activities with the department. Hence, just by putting in a permanent account number, the taxman can identify all your financial transactions.      
+
+What is TAN?
+TAN is an abbreviation for Tax Deduction and Collection Account Number. It is a unique 10-digit alphanumeric digit allotted by the Income Tax Department of India. All persons responsible for deduction (TDS) or collection of tax (TCS) are required to obtain TAN. It is compulsory to quote the TAN in TDS/TCS return, any TDS/TCS payment challan, and TDS/TCS certificates.   
+
+Residents and Non-Residents
+Levy of income tax in India is dependent on the residential status of a taxpayer. Individuals who qualify as a resident in India must pay tax on their global income in India, i.e. income earned in India and abroad. Whereas, those who qualify as Non-residents need to pay taxes only on their Indian income. The residential status has to be determined separately for every financial year for which income and taxes are computed.
+
+Income Tax Payment
+Tax Deducted at Source (TDS)
+For specified payments, tax is deducted at source when paying the recipient of income. The income recipient can claim credit of the TDS amount by adjusting it with the final tax liability.
+
+Advance Tax
+The taxpayer must pay tax in advance when his estimated income tax liability for the year exceeds Rs 10,000. The government has specified due dates for payment of advance tax installments.
+
+Self-Assessment Tax
+It is the balance tax that the taxpayer has to pay on the assessed income. The self-assessment tax is calculated after reducing the advance tax and TDS from the total income tax calculated on the assessed income.
+
+E-Payment of Taxes
+Taxpayers can pay advance tax and self-assessment tax online from the e-filing website. Click here to learn how to pay taxes online through e-filing portal.
+
+Filing Your ITR
+E-filing of income tax return has been made mandatory for all classes of taxpayers, barring a few exceptions:
+
+Taxpayers aged 80 and above need not e-file the return.
+Taxpayers having an income less than Rs 5 lakhs and not claiming a refund need not e-file the return.
+For the rest, E-filing is mandatory. Do note that deadlines for filing returns have also been prescribed. For most individual taxpayers, the due date for filing the return of income is 31 July, immediately following the concerned financial year. If you do not file on time, here are some disadvantages:
+
+You will be denied carry forward of losses (except house property loss) to future years.
+Delay processing of refund claims if any.
+Difficulty on getting home loans.
+Levy of late filing fee upto Rs 5,000 (if the total income is above Rs 5 lakh) and Rs 1,000 (if the total income is below Rs 5 lakh) under Section 234F.
+Levy of interest under 234A if there are taxes due as on 31 July.
+E-filing is a better alternative to filing on the income tax website. Also, it is for more than just e-filing your income tax return. 
+
+Clear helps you claim all the deductions you’re eligible for and enables you to invest. Once you file your return online, you either e-verify the same or take a print of the ITR V and send it to CPC, Bengaluru, for processing your return.    
+
+Read our detailed article on e-verification of return of income.   
+
+Here’s a guide to e-filing your first tax return on Clear.
+
+Income Tax Return
+The taxpayer shall file an income tax return every year via ITR forms prescribed by the income tax department. The government has prescribed seven ITR forms through which the taxpayer can file his income tax return. The taxpayer has to choose the appropriate ITR forms and file his income tax return.
+
+Income Tax Forms List
+The seven ITR forms are:
+
+ITR-1: Individuals (residents) having income from salary, one house property, other sources, agricultural income less than Rs 5,000 and with a total income of up to Rs 50 lakh.
+ITR-2: Individuals/HUFs not having any business or profession under any proprietorship, more than one house property. 
+ITR-3: Individuals/HUFs having income from a proprietary business or profession, income of a person as a partner in a firm.
+ITR-4: Individuals/HUFs having presumptive income from business or profession, one house property.
+ITR-5: Partnership firms or LLPs.
+ITR-6: Companies.
+ITR-7: Trusts.
+Documents Required for ITR Filing
+Form 16, Form 26AS, AIS, TIS, Form 16A, proof of tax saving investments made, bank account details, etc, are some of the crucial information/documents you need to be ready with before filing your return. Further, the documents you will need to file your tax return will largely depend on your source of income. Here is our detailed article on documents you need for filing of your return of income. 
+
+How can I calculate my income tax?
+
+Individuals should calculate income tax depending on the nature of their income. The salaried individual can take the eligible exemptions available for various allowances received. Individuals/HUF can take a deduction under Sections 80C to 80U, deduct it from the gross total income, and calculate the income tax liability. Also, the total income tax liability should be adjusted by the taxes paid, such as advance tax, TDS, etc. 
+
+Also, the taxpayer should apply the effect of rebate under Section 87A and relief under Section 89, Section 90, and Section 91 to arrive at the net amount of income tax payable.
+
+Any income that you receive should form part of your income tax return. Of course, the law provides exemptions for certain incomes, e.g. LTCG on listed equity shares up to Rs 1 lakh in any financial year, agricultural income, etc.  Therefore, here is a quick guideline you can probably follow to compute taxes due on your income:
+
+List down all your income – be it salary, rental income, capital gains, interest income or profits from your business or profession.
+Remove incomes that are exempt under the law.
+Claim all applicable deductions available under every source of income. E.g., claim a standard deduction of Rs 50,000 from salary income, claim municipal taxes from rental income, claim business-related expenses from your business turnover, etc.
+Claim all applicable exemptions under every head of income, e.g., amount reinvested in another house property can be claimed as exemption from capital gains income, etc.
+Claim applicable deductions from your total income, e.g. the Section 80 deductions like 80C, 80D, 80TTA, 80TTB, etc.
+You will now arrive at your taxable income. Check the tax slab you fall under and accordingly arrive at your income tax payable.
+The government keeps introducing and altering tax slabs, schemes and tax benefits, so it’s a good idea to keep up with the Budget. 
+
+What Is Computation Of Income?
+The process of calculating taxable income after taking into account the income from all the five heads (salary, house property, capital gains, business or profession, and other sources), exemptions, deductions, rebates, set off of losses, etc., is called computation of income. After the computation of income, the taxpayer can compute the income tax liability as per the Income Tax Act.
+
+Rebate u/s 87A
+Rebates under Section 87A allow taxpayers to reduce their income tax liability. If you are a resident individual and the amount of your total income after reducing Chapter VI-A deductions (Section 80C, 80D, 80U, etc) does not exceed Rs 5 lakh in a financial year, you can claim a tax rebate up to Rs 12,500. This means if your total tax payable is less than Rs 12,500, then you will not have to pay any tax.
+
+In Budget 2023, a tax rebate on income of Rs 7 lakhs has been introduced under the new tax regime, and no changes have been made in the 2024 interim budget. Therefore, you do not have to pay tax if your taxable income is up to Rs 7 lakhs under the new tax regime.
+
+E-File Returns
+The taxpayer shall electronically file the income tax return through the e-filing platform of the IT department. To file the income tax return, the taxpayer should register at www.incometax.gov.in. After that, the taxpayer can log in to the website and file his ITR. Also, there is no need to manually send the acknowledgement of the return to the income tax department. The income tax department now allows e-verification of the ITR in different ways, which completes the income tax return process.   
+
+What is ITR–V?
+Form ITR-V is an income tax return verification form generated after the taxpayer files income tax return and submits it to the income tax department. The ITR-V should be e-verified or must be sent to CPC Bangalore at “Income Tax Department – CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka” for verification. The ITR processing takes place only if its verification is completed.
+
+Did You E-file Your Tax Return For This Year?
+You can file your Income Tax Return on ClearTax. Even if you don’t know anything about taxes, we will take you step-by-step and help you e-file. Check ClearTax Income Tax E Filing. 
+
+Income Tax Saving Instruments
+A taxpayer can save tax by tax planning. A taxpayer can do tax planning by investing in tax-saving instruments. It helps in reducing the income tax liability. Section 80C to 80U of the Income Tax Act allows a deduction for certain expenditures and investments from the total computed income if taxes paid under the old tax regime. Some of the popular Section 80C investments are: 
+
+Popular Section 80C Investments
+
+Particulars
+
+ELSS
+
+PPF
+
+NSC
+
+5-Year Tax Saving FD
+
+SCSS
+
+Section 80C Benefit
+
+Yes
+
+Yes
+
+Yes
+
+Yes
+
+Yes
+
+Type of Investment
+
+Equity
+
+Fixed Income
+
+Fixed Income
+
+Fixed Income
+
+Fixed Income
+
+Lock-in Period
+
+3 Years
+
+15 Years
+
+5 Years
+
+5 Years
+
+5 Years
+
+Maximum Investment
+
+No Max Limit
+
+Rs 1.5 lakh
+
+No Max Limit
+
+Rs 1.5 lakh
+
+Rs 15 lakh
+
+*ELSS and NSC have no upper investment limit. However, you get tax benefits under Section 80C only up to Rs 1.5 lakh per financial year.
+
+Health Insurance and Medical Expense Deduction
+Apart from the Section 80C deduction, a taxpayer can also take a tax benefit under Section 80D for health insurance premium and medical expenditure incurred for self, family and parents. 
+
+Person insured
+
+Maximum deduction Below 60 years
+
+Maximum deduction 60 years or older
+
+You, your spouse, your children 
+
+Rs. 25,000
+
+Rs. 50,000
+
+Your parents
+
+Rs. 25,000
+
+Rs. 50,000
+
+Preventative health checkup
+
+Rs. 5,000
+
+Rs. 5,000
+
+Maximum deduction (includes preventive health checkup)
+
+Rs. 50,000
+
+Rs. 1,00,000
+
+Education Loan Deduction
+Under Section 80E, the taxpayer can claim a deduction for the interest paid on a loan taken for higher education. There is no limit to claiming such a deduction in the income tax return.
+
+Home Loan Deduction
+Under Section 24, the taxpayer can claim a deduction for interest paid on a housing loan during the relevant financial year. The deduction amount will depend upon whether the house is self-occupied or let out. The taxpayer can also claim a deduction of the principal amount of the loan under Section 80C up to Rs 1.5 lakh. 
+
+ 
+
+Deduction on
+
+Maximum allowed (for self-occupied house property)
+
+Maximum allowed (for property on rent)
+
+Stamp duty and registration + principal
+
+Rs 1,50,000 within the overall limit of Section 80C
+
+Rs 1,50,000 within the overall limit of Section 80C
+
+Deduction on home loan interest under Section 24
+
+Rs 2,00,000
+
+No cap (but rental income must be shown in the income tax return). Further, the maximum loss from house property is capped at Rs 2 lakhs
+
+Deduction for first-time homeowners under Section 80EE *certain conditions apply
+
+Rs 50,000
+
+–
+
+Deduction for Interest Income
+The taxpayer can also claim a deduction for interest on deposits from banks under Section 80TTA of the Income Tax Act. Individuals can claim up to Rs 10,000 deduction under the said section.
+
+Important Income Tax Dates 2024
+15th March 2024 - Due date for the fourth installment of advance tax for the FY 2023-24. 
+15th June 2024 – Due date for the first installment of advance tax for the FY 2024-25.
+31st July 2024 – Income tax return filing for FY 2023-24 for individuals and entities not liable for tax audit and who have not entered into any international or specified domestic transaction.
+15th September 2024 – Due date for the second installment of advance tax for the FY 2024-25.
+30th September 2024 – Submission of audit report (Section 44AB) for AY 2024-25 for taxpayers liable for audit under the Income Tax Act.
+31st October 2024 – ITR filing for taxpayers requiring audit (not having international or specified domestic transactions).
+31st October 2024 – Submission of the audit report for AY 2024-25 for taxpayers having transfer pricing and specified domestic transactions.
+15th December 2024 – Due date for the third installment of advance tax for the FY 2024-25.
+31st December 2024 – Last date for filing a belated return or revised return for FY 2023-24.
+Income Tax Law
+Income Tax Act
+The Income Tax Act includes all the provisions that govern the country’s taxation. Every year, the Finance Minister presents a budget in February. The Union Budget brings in various amendments to the Income Tax Act. The most recent Union Budget presented by the current Finance Minister included the introduction of a new tax regime.
+
+Apart from the IT Act, the other components of the income tax law are income tax rules, circulars, notifications, and case laws. All of these help in the implementation of income tax law and the collection of taxes.
+
+About Income Tax Department India
+The Income Tax Department is a government agency. The Act empowers the Income Tax Department to collect direct tax on behalf of the Government of India. The Ministry of Finance manages the revenue functions of the Government of India. The finance ministry has given the task of administration of direct taxes, like Income Tax, etc., to the Central Board of Direct Taxes (CBDT). The CBDT is one of the parts of the Department of Revenue in the Ministry of Finance. The CBDT administers direct tax laws through the IT Department. 
+
+Thus, the Income Tax Department is a government agency that administers the Income-tax law under the control and supervision of the CBDT. The Income Tax Department has been given the power to collect direct tax on behalf of the Government of India. 
+
+Budget 2023 – All Income Tax Related Announcements
+Deduction from Capital Gain -  Capital gains on reinvestment in a residential house property under sections 54 and 54F of the Income Tax Act are ceiled to Rs.10 crores.
+Surcharge - The highest surcharge rate was reduced from 37% to 25%.
+Insurance policies - Income from insurance policies having a premium or aggregate premium above Rs 5,00,000 a year is taxable under the head 'Income from other sources'. This new rule will apply to policies issued on or after 1st April 2023. A deduction shall be allowed for a premium paid if it is not claimed earlier under any other provisions of the act. Suppose the Income received on the insured person's death is considered exempt.
+E-gold Receipt - Conversion of gold into E-gold receipts or vice versa is not treated as capital gain. 
+Presumptive taxation - For MSMEs and certain professionals, the limit is raised to Rs 3 crore and Rs 75 lakh to avail presumptive taxation benefits. An increased limit applies provided the total cash receipts are not more than five per cent of the total gross receipts/ turnover.
+Don't fall behind your taxes!
+With ClearTax's 3-step filing, get your taxes done early and enjoy peace of mind.
+File Now 
+Use ITR55 for flat 55% Off
+Related Income Tax Articles
+
+Income Tax Department Portal – Login & Registration Guide
+incometaxindiaefiling.gov.in – Income Tax e-Filing Guide
+Income Tax E Filing
+Income Tax Slabs & Rates
+Check your Income Tax Refund Status Online
+What is Form 26AS?
+What is Form 16?
+Frequently Asked Questions
+When it is mandatory to file return of income?
+
+The companies and firms are mandatorily required to file an income tax return (ITR). However, individuals, HUF, AOP, BOI should file ITR if the income exceeds the basic exemption limit of Rs 2.5 lakh. This limit is different for senior citizens (Rs 3 lakhs) and super senior citizens (Rs 5 lakh).
+
+Can i file return of income even if my income is below taxable limits?
+
+Yes, you can file return of income voluntarily even if your income is less than basic exemption limit
+
+What documents are to be enclosed along the return of income?
+
+There is no need to enclose any documents with the return of income. However, one should retain the documents to produce before any competent authority as and when required in future.
+
+Should I disclose all my income in the return even if it is exempt?
+
+Yes. Income from every source including exempt income must be disclosed. The same can be shown under the Schedule EI.
+Should I e-verify to get the IT refund?
+
+e-Verification of the income tax return filed electronically is mandatory to complete the process of ITR filing. One should e-verify income tax returns within the stipulated time. Non-verified ITR will be treated as invalid. You can e-verify ITR by Aadhaar OTP, bank ATM, Electronic Verification Code (EVC), and net-banking.
+
+Can I take Section 87A rebate from tax on long-term and short-term capital gains if there is no other income?
+
+You can take rebate under Section 87A from tax on long-term and short-term capital gains. However, if there is long-term capital gain from sale of equity shares or equity oriented funds (Section 112A), you cannot adjust rebate under Section 87A from tax on such LTCG.
+
+Can I file a return after completion of the assessment year?
+
+The Budget 2022 proposed to introduce an ‘Updated’ return that can be filed within 24 months of the end of the relevant AY, on the payment of additional tax. Even if you have not filed original return before the due date specified in the Income Tax Act, you can file the ‘updated’ return.
+
+What are the maximum exemption limit and slab rates applicable for Assessment Year 2024-25?
+
+ 
+
+New Income Tax Slab
+
+Slab Rates (For Resident and non-resident individuals, senior citizens and super senior citizens)
+
+Up to Rs 3,00,000	Nil 
+Rs 3,00,001 - Rs 6,00,000	5% (tax  rebate u/s 87A)
+Rs 6,00,001 - Rs 9,00,000	10% (tax rebate u/s 87A up to 7 lakh)
+Rs 9,00,001 - Rs 12,00,000	15%
+Rs 12,00,001 - Rs 15,00,000	20%
+More Than Rs 15,00,000	30%
+Is standard deduction of Rs 50,000 allowed under the new tax regime?
+
+Yes, standard deduction is allowed under the new tax regime.
+
+What are the income tax changes in interim budget 2024?
+
+For the AY 2024-25, there has been no changes in the income tax.
+
+What is the basic exemption limit for FY 2023 24?
+
+The basic exemption limit under the old tax regime for individuals below the age of 60 years is 2.5 lakhs, and 3 lakhs for people aged between 60 to 80 years and 5 lakhs for the people over the age of 80 years. Under the new tax regime the basic exemption limit is 3 lakh for all the individuals.
+
+What are the deductions allowed under the new tax regime?
+
+As per the new tax regime, majority of the deductions are not allowed. However, standard deduction of up to 50,000 is allowed, family pension, and deduction for employers contribution to NPS account is allowed.
+
+Which are the ITR Forms?
+
+ITR 1, 2, 3,4, 5, 6, 7 are all the ITR Forms available.
+
+Is NPS scheme taxable under the new tax regime?
+
+Tax benefit is available for the employer's share to the NPS Contribution. However, employees share to the NPS Contribution.
+
+
+Acquiring a home loan can provide opportunities to save on taxes, in accordance with the regulations of the Income-tax Act, 1961. The latest financial budget included provisions that further enhanced these benefits.
+
+During the budget speech, the Union Finance Minister, Nirmala Sitharaman, proposed an extension on the deadline for additional deductions on interest payments for home loans, following the previous extension until 31 March 2022. This extension applies to all home loans that have been sanctioned before 31 March 2022.
+
+While obtaining a housing loan can be costly, it is also possible to benefit from several tax deductions that can save money each year. It is important to understand how to maximize these benefits.
+
+Home Loan Tax Benefit Summary:
+Deductions	Section	Maximum Deduction (INR)	Conditions
+Principal	80C	1.5 Lakh	House property should not be sold within 5 years of possession.
+Interest	24b	2 Lakh	The loan must be taken for the purchase/construction of a house, and the construction must be completed within 5 years from the end of the financial year in which the loan was taken.
+Interest	80EE	Rs.50,000	The amount of loan taken should be Rs 35 lakh or less, and the property’s value does not exceed Rs 50 lakh. The home loan should be taken between 1st April 2016 to 31st March 2017.
+Stamp Duty	80C	1.5 Lakh	It can be claimed only in the year these expenses are incurred.
+Interest	80EEA	1.5 Lakh	The stamp value of the property should be Rs.45 lakh or less. The taxpayer is not eligible to claim a deduction under Section 80EE. The home loan should be taken between 1 April 2019 to 31 March 2022.
+No matter how complex your portfolio ?
+Simplify your tax filing with Cleartax’s live assisted, intelligent, 3-step tax-filing ?
+File Now  
+Use ITR55 for flat 55% Off
+Deduction for Interest Paid on Housing Loan Under Section 24
+A home loan must be taken for the purchase or construction of a house to claim a tax deduction. If it is taken for the construction of a house, then it must be completed within five years from the end of the financial year in which the loan was taken.
+
+The interest paid on the home loan EMI for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section 24. 
+
+From the assessment year 2018-19 onwards, the maximum deduction for interest paid on self-occupied house property is Rs 2 lakh.
+
+For let out property, there is no upper limit for claiming tax exemption on interest, which means that you can claim deduction on the entire interest paid on your home loan. 
+
+In case the construction exceeds the stipulated time, i.e. 5 years, you can claim deductions on interest of home loan only up to Rs 30,000 for the financial year.
+
+However, the overall loss can be claimed under the head ‘Income from House Property’ against any other head of income up to to Rs 2 lakh only. This deduction can be claimed from the year in which the construction of the house is completed.
+
+Deduction on Interest Paid Towards Home Loan During the Pre-construction Period
+Say you bought an under-construction property and have not moved in yet but you are paying the EMIs. In this case, your eligibility to claim interest on the home loan as a deduction begins only upon completion of construction or immediately if you buy a fully constructed property. 
+
+So, does this mean you would not enjoy any tax benefits on the interest paid during the period falling between the borrowing of loan and completion of construction? No.
+
+Let’s understand why. 
+
+The Income Tax Act allows to claim a deduction of such interest also, called the pre-construction interest. A deduction in five equal instalments starting from the year the property is acquired or construction is completed is allowed, over and above the deduction you are otherwise eligible to claim from your house property income. However, the maximum eligibility remains capped at Rs 2 lakh.
+
+For example, you have availed a home loan for construction and pay interest of Rs 10,000 a month. Construction of the house was completed in 2019 after two years. Hence, you can start claiming the pre-construction interest of Rs 2.4 lakh (approx) paid by you only after the construction gets completed in five equal instalments starting from 2019. Maximum interest deduction under Section 24(b) is capped to Rs 2 lakh (including current year interest + pre-construction interest). 
+
+However, if your home loan is eligible for deduction under Section 80EEA, you can claim an additional deduction of Rs 1.5 lakh. We have discussed Section 80EEA later in this article.
+
+Deduction on Principal Repayment Under Section 80C
+The principal paid on the home loan EMI for the year is allowed as a deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh.
+
+But to claim this deduction, the house property should not be sold within five years of possession. Otherwise, the deduction claimed earlier will be added back to your income in the year of sale.
+
+Deduction for Stamp Duty and Registration Charges Under Section 80C
+Besides claiming the deduction for principal repayment, a deduction for stamp duty and registration charges can also be claimed under Section 80C but within the overall limit of Rs 1.5 lakh. 
+
+However, it can be claimed only in the year these expenses are incurred.
+
+Additional Deduction Under Section 80EE
+Additional deduction under Section 80EE is allowed to the home buyers for a maximum of up to Rs 50,000. To claim this deduction, the following conditions should be met:
+
+The amount of loan taken should be Rs 35 lakh or less, and the property’s value does not exceed Rs 50 lakh.
+The loan must have been sanctioned between 1st April 2016 to 31st March 2017.
+And on the date of loan sanction, the individual does not own any other house, i.e. first-time house owner.
+Section 80EE was reintroduced but is valid for loans sanctioned till 31st March 2017 only.
+
+Additional Deduction Under Section 80EEA
+To promote the housing sector, Budget 2019 has introduced an additional deduction under Section 80EEA for homebuyers for a maximum of up to Rs 1.5 lakh. 
+
+To claim this deduction, below mentioned conditions should be met:
+
+The stamp value of the property does not exceed Rs 45 lakh.
+The loan must have been sanctioned between 1 April 2019 to 31 March 2022 (extended from 31 March 2021)
+On the date of loan sanction, the individual does not own any other house, i.e. first time home buyer.
+The individual should not be eligible to claim deduction under Section 80EE if claiming deduction under this section.
+Deduction for a Joint Home Loan
+If the loan is taken jointly, each loan holder can claim a deduction for home loan interest up to Rs 2 lakh each and principal repayment under Section 80C up to Rs 1.5 lakh each in their tax returns.
+
+To claim this deduction, they should also be co-owners of the property taken on loan. So, a loan taken jointly with your family can help you claim a larger tax benefit.
+
+Impact of New Tax Regime on Home Loan benefits
+Home Loan benefits under the old tax regime remains the same as one can avail deductions without any restrictions, however the under new tax regime benefits are curtailed, let’s know what they are 
+
+Deduction under section 80C, 80EE, 80EEA for the payment towards principal component of the home loan, stamp duty, registration charges are not available
+Deduction under section 24b for the payment towards the interest component of the home loan is not available for self-occupied property.
+However, deduction under section 24b is available for let-out property. If net income from let out property results in loss, then such loss will be allowed to set off against profit from another house property but not allowed to set off against other heads of income like salary or other sources.
+No matter how complex your portfolio ?
+Simplify your tax filing with Cleartax’s live assisted, intelligent, 3-step tax-filing ?
+File Now  
+Use ITR55 for flat 55% Off
+Also Know About:
+UIDAI
+ITR Filing
+UAN
+Income Tax Guide
+Mutual Fund Investment
+ITR Filing Due Dates
+Frequently Asked Questions
+Who can claim tax deductions on housing loans?
+
+Only the owners of the property can claim tax deduction on home loans. If the home loan is taken jointly with a spouse, each borrower can claim deduction on home loan interest in the ratio of their ownership.
+
+How much tax benefit do I get on home loan?
+
+The  tax benefit  for a home loan as per different sections in Income Tax Acts is listed below
+
+Up to Rs 2 lakh under Section 24(b) for self-occupied home
+Up to Rs 1.5 lakh under Section 80C
+Who is eligible to claim tax deductions on home loans?
+
+The property owner is eligible to claim tax benefits, and if the spouse is a co-borrower, they can also apply for tax deductions. In the case of a joint loan, both parties can claim tax benefits based on their respective share of the loan payments.
+
+Are there any tax benefits on second home loan?
+
+Yes. When the first home is self-occupied and the second home is vacant, it will be considered as self-occupied. In such a case, a tax deduction can be claimed on the interest paid for both houses. However, it cannot exceed Rs 2 lakh. When the first home is self-occupied, and the second one is given on rent, you have to declare the rental income of the second property. From there you can deduct the standard deduction of 30%, interest on the home loan and the municipal taxes paid.
+
+Can my spouse claim income tax deduction when we buy the house jointly?
+
+Yes, your spouse can claim separate deductions in IT returns when your spouse is employed and has a separate source of income. Both of you can claim deduction under Section 80C up to Rs 1.5 lakh from your total income towards the principal component of home loans and deductions up to Rs 2 lakh on the home loan interest.
+
+How to claim tax benefits on home loan?
+
+Below is the process to claim home loan benefits:
+
+Keep the documents ready, such as ownership documents, loan details, certificate from the bank with the interest and principal details and municipal taxes paid receipts.
+Submit these documents to your employer for adjustment of TDS if you are a salaried employee. If you are self-employed, you don't have to submit the documents to anyone.
+Calculate the income from house property.
+File your ITR to claim deduction on interest on home loan and principal repayment.
+Can I claim tax benefits if the purchase a property with a home loan but the house is under construction?
+
+You cannot claim tax deductions till the construction of the house is completed. Once it is completed, you can claim an aggregate of interest paid for the period prior to the year of taking possession in five equal instalments from the year in which construction is completed.
+
+Is there a limit to the amount of interest that I can claim as a deduction?
+
+Yes, the maximum amount of interest that can be claimed as a deduction is Rs. 2 lakh per annum for a self-occupied property and there is no upper limit for a let-out property.
+
+Can I claim tax benefits on a home loan taken for the renovation of a property?
+
+Yes, tax benefits on a home loan taken for the renovation of a property can be claimed under Section 24 of the Income Tax Act, 1961, up to a maximum limit of Rs. 30,000 per annum.

data/taxation.txt

@@ -0,0 +1,325 @@
+Query: I am a 55-year-old individual covered by my employer’s group health insurance policy, which also extends to my senior citizen parents. Last year, I experienced a significant muscle pull in my leg while participating in sports, leading to the necessity of ongoing physiotherapy. I am curious about the eligibility for tax benefits on the medical expenses related to this situation in the current financial year. Furthermore, my octogenarian father has been diagnosed with Parkinson’s disease. In October 2023, he suffered a fall in the bathroom, resulting in a broken hip that required hip replacement surgery. Even a month after the surgery, his wound necessitated regular dressing. He is currently undergoing consistent physiotherapy, and I have employed an attendant to provide nursing care at home. Given that my father is financially dependent on me, I am interested in knowing if I can claim tax benefits on the medical expenses, including physiotherapy costs and the fees paid to the attendant, associated with my father’s health issues.
+
+Solution: As outlined in Section 80D of the Income Tax Act, 1961, a deduction is allowed for the total medical expenses incurred concerning the taxpayer or their family members, capped at a maximum aggregate of ₹50,000. However, this deduction is restricted to senior citizens who have not contributed to health insurance premiums. Since you do not qualify as a senior citizen, this deduction is not applicable in your situation.
+
+Similarly, under Section 80D of the Income Tax Act, a deduction is applicable for the entire sum spent on medical expenses related to the health of the taxpayer’s parent, not exceeding ₹50,000. This deduction is specifically designed for senior citizens who have not made any payments toward health insurance coverage.
+
+In line with the provisions of Section 80D of the Income Tax Act, expenses associated with hip replacement may be eligible for a deduction as medical expenses, provided they are not covered by the group insurance offered by your employer.
+
+Moreover, costs associated with physiotherapy and attendant care can also be asserted as medical expenses. Nevertheless, it’s crucial to recognize that the definition of medical expenses is open to interpretation by the tax officer, as the law does not explicitly delineate these expenses, potentially leading to legal disputes.
+
+Irrespective of the circumstances, it is vital to bear in mind that the total deductions should not surpass ₹50,000.
+
+Query: A person is seeking an appropriate answer to a question regarding availing income tax benefits. The questioner has availed a housing loan of ₹5 lakh from their Employee’s Co-operative Credit Society. Additionally, they have obtained another home loan of ₹15 lakh from a bank for the same property. The query raised pertains to whether they can avail of tax benefits on both of these home loans.
+
+Solution: The ability to claim credit under Section 80C for the principal repayment of a home loan is subject to certain conditions. The benefits of income tax credit on home loans can be availed if the home loan is obtained from specific entities such as the government (Central or state), banks (including cooperative banks), LIC, National Housing Bank, housing finance companies, cooperative societies providing construction financing for house, public companies, public sector companies, universities, and others.
+
+In the case at hand, the individual will be eligible for the Section 80C deduction for repayment done to the bank. However, they will not be able to claim this deduction for repayment made to their employee credit cooperative society.
+
+Regarding the payment of interest, there are no restrictions on the source of borrowed funds. The individual can even demand a deduction for interest paid to friends and relatives if the borrowed money was used for the stated purpose. Therefore, they can claim a deduction for interest paid under Section 24(b) for both loans, up to a limit of ₹2 lakh, in the case of a self-occupied property. If the property is rented out, the individual can claim the full interest amount against rental income. However, any loss incurred under the head of house property can only be offset against other income up to ₹2 lakh in the same year. Any remaining unabsorbed loss can be carried forward for a maximum of eight years to offset against future house property income.
+
+It’s important to note that the benefits of interest and repayment deductions for home loans are applicable only under the old tax regime. If the individual chooses the new tax system, the deduction as stated in Section 80C is not available. Additionally, in the new tax regime, there is no provision for interest deduction on self-occupied house property, and any loss under the income from house property category cannot be set off against other income in the same year or carried forward.
+
+Query: Can failing to submit an income tax return lead to prosecution as provided in section 276CC of the Income Tax Act, 1961 if the total tax remains to be paid after deducting TDS and the advance tax to be paid is less than Rs 10,000?
+
+The questioner seeks to get further details on the recent decision given by the Madras High Court regarding the initiation of prosecution under section 276CC of the IT Act in such cases.
+
+Solution: Response from Dr. Suresh Surana, Founder of RSM India, Addressing the Question:
+
+Section 276CC of the IT Act provides for imprisonment if an individual fails to file their income tax returns. Prosecution under this section can occur if someone doesn’t submit their return of income under Section 139(1) or fails to respond to a notice issued under Section 142(1)(i) (for Enquiry before assessment), Section 148 (for Income escaping assessment), or Section 153A (for Search or Requisition) of the Income Tax Act.
+
+The proviso to Section 276CC allows some relief to honest taxpayers. Specifically, clause (ii)(b) of Section 276CC states that if the tax to be paid, as decided based on regular assessment and reduced by advance tax payments and tax deducted at source, is less than Rs. 10,000, the taxpayer will not be prosecuted for failing to file the return under Section 139(1) of the IT Act.
+
+In the case of Manav Menon vs Deputy Commissioner of Income Tax Crl. O.P. No. 26013 of 2021, the Madras High Court gave a decision on this matter. The taxpayer in this case failed to file their income tax return for the Assessment Year 2013-2014.
+
+Subsequently, the revenue department issued a show cause notice under Section 276CC of the IT Act, asking why proceedings under Section 276CC should not be initiated against the taxpayer for their deliberate failure to submit the return of income within the stipulated time in Section 139(1) of the IT Act. The taxpayer filed their income tax return on 14.01.2019 after receiving the notice.
+
+In light of these facts, the High Court stated that the aforementioned proviso protects genuine taxpayers who either file their returns late but before the end of the assessment year or have paid significant amounts of their unpaid/remaining tax through advance taxes. Consequently, such taxpayers are exempt from the diligence of the prosecution under Section 276CC of the IT Act.
+
+Therefore, the High Court observed that since the taxpayer had paid taxes amounting to Rs. 23,75,066/- under the categories of Advance Tax, TDS, TCS, and Self Assessment Tax, while the total tax and interest payable by them was Rs. 23,74,610/-, the proviso (ii)(b) of Section 276CC shields the taxpayer from prosecution under Section 276CC of the IT Act.
+
+In summary, the applicability of the prosecution provision under Section 276CC should be assessed objectively, taking into account the provisions of the section itself and the relevant legal precedents on the basis of cases.
+
+Query: My mother acquired a plot of land 12 years ago for 8 lakhs. Presently, she intends to sell it for 33 lakhs to purchase a flat. The government’s assigned circle rate for this land stands at 17 lakhs.
+
+To prevent overpayment of stamp duty during registration, we’ll register the sale at the circle rate. Now, how can we handle the remaining amount above the circle rate? Can we manage it through cash or online transactions? Moreover, what are the best methods to minimize tax liabilities in this scenario?
+
+Also, will my mother need to file her Income Tax Return (ITR) due to this transaction?
+
+Solution: I recommend you implement the sale deed on the actual transaction value and offer to file the differential stamp duty amount to the buyer. Your mother shall required to explain the cash source if you accept the difference in cash and want to utilize the same for the official purpose. Even online accepting of money makes you explain the nature of transactions with regard to online money that your mother obtained. As your mother is unable to elaborate on the money source she might be liable to pay the tax at a 60% flat rate including the penalty in the bonus.
+
+Since for more than 24 months, the plot of land has been held by your mother the profits shall be counted under the long-term capital gains, and since your mother has the intention to invest in the sale of the plot of land in order to buy the residential house she could avail the income tax exemption under section 54F with regard to the long term capital gains pertinent to the fulfilment of specified additional conditions.
+
+Within a duration of two years from the plot selling date, learn that the residential property needs to be bought. When she has an intention to proceed with the self-construction or book an under-construction property then the construction is required to be finished within 3 years. When the full money is not been used within the last filing date of ITR then the unused money is required to get deposited in the bank account beneath the capital Gains account scheme for which money could be utilized for purchasing the property within the specified time duration.
+
+If the total income of a person before any deduction and exemption under section 54F surpasses the basic amount of exemption then as per the income tax laws an individual is mandated to file his ITR, even if your mother does not secure any tax liability because of the available exemption under 54F then also she is required to file the ITR.
+
+Query: I want to sell a part of my own land. Is there any way to save on capital gains tax?
+
+Solution: An individual is seeking ways to save on capital gains tax when selling properties. Let us see what experts suggest in this regard. The answer to this question offers valuable insights and strategies to minimize tax liabilities in such transactions.
+
+According to experts, the duration of property ownership plays a crucial role in determining the tax treatment of capital gains. If you have held the property for 24 months or more, any gains from its sale will be classified as long-term capital gains. However, if the property was owned for less than 24 months, the profits will be considered short-term capital gains and taxed at a slab rate accordingly.
+
+For those selling properties held for over 24 months, two options are available to save on long-term capital gains tax. The first option, outlined in Section 54F of the Income Tax Act, allows for an exemption if the proceeds from the sale are used for buying or building a residential house. The individual must invest within two years after or one year before the plot’s sale date. Alternatively, in case you build a house within three years and invest the aggregate consideration, you are liable to claim the exemption.
+
+Individuals who are unable to invest the entire amount for the above-mentioned purpose before the filing due date to deposit the unutilized money in a capital gains deposit account with a scheduled bank. You have the option to utilize the funds that have been deposited for either buying or building the house. This account can be accessed later for buying or constructing the house. To qualify for a full exemption, the entire sale consideration must be invested in the purchase of residential property. Otherwise, the exemption will be proportionate to the total consideration invested.
+
+Another option available under Section 54EC is to invest in capital gains bonds issued by some particular financial institutions such as REC (Rural Electrification Corporation), NHAI (National Highway Authority of India), PFC (Power Finance Corporation), and RFC (Railway Finance Corporation). However, only the indexed long-term capital gains, need to be invested in these bonds not the whole of the sale consideration in the bonds in order to qualify for the exemption under Section 54EC.
+
+The entire sale consideration is not included in this. There is a threshold of up to Rs. 50 lakh on claiming exemption under Section 54EC for a single financial year. The investment must be made within six months from the date of the property sale, even if it extends beyond the income tax return filing deadline. Notably, there is no requirement to deposit unutilized funds in a capital gains deposit account. These bonds currently offer an annual coupon rate of 5.25%, which is taxable.
+
+By following these expert recommendations, property sellers can effectively manage their capital gains tax obligations while maximizing their returns from property transactions.
+
+Query: In a bid to secure joint ownership of a flat in the National Capital Region (NCR), a taxpayer is looking for ways to effectively manage the associated tax burdens. The individual (the husband) plans to contribute 70% of the property’s cost, while the spouse will contribute the remaining 30%. To finance their purchase, they have taken separate home loans. The couple intends to rent out the newly acquired flat, which is subject to taxes on the rental income. It is worth noting that the wife falls within the 10% tax bracket, while he falls under the higher 30% tax slab. Consequently, they are planning to minimize their overall tax burden. As part of their tax planning, he is asking whether his wife can increase her share in the property by paying him for that share. However, they are uncertain whether it is necessary to explicitly mention the percentage of their respective ownership shares in the sale deed.
+
+Solution: According to the Income Tax Act of 1961, the person who pays for an asset is responsible for the taxable income generated from it. In this case, since the taxpayer is contributing 70% of the funds and his wife is contributing 30%, he can declare the rental income in both their names based on their respective shares in the property.
+
+It is important to keep in mind that if the rental income is disproportionate, it may have negative consequences under Section 60. This section states that the income will be combined with the asset owner’s income if the income is transferred without transferring the asset.
+
+Any income earned from renting out the mentioned property will be subject to taxation under the category of “Income from House Property.” A deduction of 30% of the rent received is allowed. The full interest on loans taken for such properties can be exempted from taxes under Section 24. Principal repayments on loans taken to purchase residential houses are eligible for tax deductions within the overall limit of ₹1.5 lakh under Section 80C.
+
+It is possible for the wife to buy shares in the property, with the minimum property valuation determined by prevailing stamp duty rates under Section 50C of the Income Tax Act.
+
+If the plot qualifies as a long-term capital asset at the time of sale (held for more than 24 months), the taxpayer may consider reinvesting the capital gains in purchasing or constructing another residential house to reduce the impact of capital gains tax. This option is subject to the conditions under Section 54F. Alternatively, given that the taxpayer and his wife are considered “relatives” under the Income Tax Act, gifting can also be another alternative.
+
+However, please note that both options will require additional registration and payment of stamp duty fees to establish the revised ownership structure in official documents. Finally, to ensure clear succession planning and avoid any future ambiguity, it is highly recommended to define each individual’s share in the sale deed.
+
+Query: As an NRI residing in Canada, I am faced with a situation where my traditional house property in India is being sold. Now I want to save tax that’s why I am seeking advice. Can you properly guide me?
+
+Solution: Mrinal Mitra, an NRI who is currently a Canadian resident, seeks clarification saying that his ancestral home in Kolkata is being sold, from which he anticipates receiving approximately Rs 15 lakh as his share. Mrinal intends to deposit this money into a joint account with his daughter at the State Bank of India in New Delhi. However, his daughter is currently a student in Canada. Mrinal sought guidance on how to manage the funds from the sale of his ancestral property to minimize potential long-term capital gains tax and find the best investment options. He is asking whether he can invest in any State Bank of India plan.
+
+It’s important to clarify that the ancestral property in question is a residential house, let’s assume, is inherited by Mrinal, constituting a long-term asset due to the extended ownership history. To calculate taxable capital gains, the Income-tax Act, 1961 (“ITA”) allows for a deduction of the cost at which the previous owner acquired the property, proportionate to Mrinal’s share. Additionally, he may be eligible for indexation benefits.
+
+To mitigate long-term capital gains tax, Mrinal has two options from which he can benefit and they are outlined in the Income Tax Act (ITA). He can invest the capital gains in a residential house property (“RHP”) in India within specific regulations provided by Section 54 of the ITA or he can make an investment in particular bonds in India for the long-term under Section 54EC of the ITA. He can purchase a new RHP within one year before the property’s transfer, within two years after the transfer, or construct a new RHP within three years after the transfer, as per Section 54.
+
+If Mrinal is unable to utilize the capital gains for the purchase or construction of a new asset before filing his income tax return, he can still claim the exemption by depositing the sale proceeds, on account of RHP, under the Capital Gain Account Scheme, 1988 (“Scheme”). This deposited amount is considered the cost of the new asset, making it eligible for exemption under Section 54 of the ITA. To do this, he can open a Capital Gain bank account with a bank notified by the government, generally, one of the scheduled banks like the State Bank of India.
+
+Furthermore, Section 54EC of the ITA allows him to save on tax by investing the capital gains amount in long-term bonds issued by entities like the National Highways Authority of India (“NHAI”) and RECL within six months from the property’s transfer. Regarding the joint account with his daughter, it’s important to note that since his daughter has no ownership share in the property sold, any tax implications, if applicable, would only concern Mrinal, in this case, and his daughter will not be subject to taxation as she was not the property owner.
+
+Query: A student seeks clarification on Form 15G and ITR filing asking the question, that he does not have any other sources of income except for interest earned from FD (bank fixed deposit). The student disclosed that the funds were provided by their father and was confused if submitting Form 15G would allow them to avoid Tax Deducted at Source (TDS) deductions. Additionally, he is not sure if filing an income tax return would still be necessary if he submits Form 15G.
+
+Solution: In the case of minors, it is mandatory to combine all passive income with the income of a parent who earns a higher income. Consequently, minors are not permitted to submit Form 15G, as the interest income they earn will be taxed in the parent’s hands. On the other hand, in the case of majors, the interest income will be subject to taxation in their own hands. However, it is important to consider any gift transactions made by their father at the time of the gift, there will be no tax implication either for the student (in this case) or for the father. If the interest income of the questioner, for the year falls below the taxable limit of 2.50 lakhs and there is no tax liability, then the individual can submit Form No. 15G to the bank. This allows the bank to pay interest without deducting tax at source.
+
+To ensure successful submission of Form No. 15G, it is crucial to provide accurate PAN (Permanent Account Number) details. Failure to furnish this information will result in the bank deducting tax at a higher rate of 20% instead of the regular TDS (Tax Deducted at Source) rate of 10%. It is important to note that submitting Form 15G does not necessitate the filing of an income tax return (ITR). The requirement to file an ITR is depended on different conditions, independent of the provisions for submitting Form No. 15G.
+
+Query: A person asks the question that his mother is a senior citizen, and has put her money in fixed deposits in multiple banks. Even after she has already submitted a 15G form to avoid tax deduction at the source, the bank has deducted tax at a 20% rate on the grounds of not having a PAN. The bank advised that she needed to file an ITR to claim the refund. How can we proceed to seek a refund? Can she file her ITR if she does not have a PAN card?
+
+Solution: Here is the suitable response for such a situation as per the regulations:
+
+Under Section 206AA, the bank can deduct tax at a rate of 20% on the interest, if your mother doesn’t have a permanent account number (PAN), even if she submitted a 15G form. In this case, as you have said that your mother is a senior citizen then she should have submitted a 15H form, not form 15G. If the aggregate tax on the income of a senior citizen who is a resident is nil, then only the form No. 15 is required to be submitted.
+
+To claim a refund for the tax already deducted by the bank, it’s essential to file her income tax return (ITR). However, she cannot file her ITR if she does not have a PAN. Therefore, on her behalf, you need to apply for a PAN card first.
+
+If she has an Aadhaar Number, it can be used in place of a PAN. Provide her Aadhaar number to the bank and request them to update their TDS return submitted by them to update her name with her PAN/Aadhaar information. Without making this correction, the bank will not provide your mother credit for the deducted tax.
+
+Additionally, even if she submits a 15H form, she still needs to furnish her PAN/Aadhaar, or else the bank will deduct tax at a 20% rate again on the entire interest. It’s important to keep in mind that filing an income tax return is not mandatory merely because you have a PAN, it depends if you meet the conditions that require you to file an ITR.
+
+Query: My 1-bhk house will be leased out and I will move into a 2-bhk apartment at a higher rental price. How will this affect taxes?
+
+Solution: Income generated from leasing out residential property and the deductions on rent paid are determined independently as per the Indian income-tax laws.
+
+Income generated from renting out a residential property is subject to taxation under the heading ‘income from house property.’ Provided deductions include municipal taxes, a standard deduction of 30%, and interest on borrowed funds. The residential income is taxed based on the applicable tax slab rates, along with any surcharges and cess that apply. On the basis of which tax regime individuals are categorized, they have specific instructions to deal with any potential losses from rental property.
+
+In the previous tax framework, potential exemptions or deductions could be applicable based on specific conditions. Such as-
+
+If you’re a salaried employee receiving a house rent allowance (HRA) from your employer, you might be eligible for an exemption under Section 10(13A) of the Income Tax Act. This exemption is calculated considering certain factors: the actual HRA received, rent paid, less 10% of basic salary and dearness allowance, or 50% of basic salary and dearness allowance, (40% in case the rented property is not in Mumbai, Kolkata, Delhi, or Chennai.
+If you are not provided with the House Rent Allowance (HRA) receipt, Section 80GG of the Income Tax Act allows you to request for a deduction. You may be eligible for the deduction of at least of the following: the rent paid less than 10% of your total income, Rs. 5000 per month or 25% of your total income.
+Your total income shall be the taxable income before any deduction is applied under this section.
+
+To qualify for this deduction, you are required to meet the following essential conditions: the rented accommodation must be owned by you and used as your residence, you or your spouse or minor child should not own any accommodation at the location where you normally reside, work, conduct business, or practice your profession, you should not own any other accommodation that is considered self-occupied or deemed let out for computing income from house property, and a tax declaration in Form 10BA must be filed by you according to the stated procedure to claim the deduction.
+
+Query: A taxpayer asked the query about making an error in filing the income tax return (ITR) on the last day of the due date, which was July 31. The taxpayer wants to know that is there any potential penalties and the deadline for doing so.
+
+Solution: Many taxpayers frequently make errors while filing their ITRs, including disclosing incorrect incomes, deductions, tax liabilities, or even selecting the wrong ITR form sometimes.
+
+Such errors may result in receiving an inquiry from the tax department or make the ITR inappropriate. To rectify these mistakes and ensure accurate reporting, taxpayers are allowed to file a revised ITR.
+
+The revised ITR for the fiscal year 2022-23 can be filed without incurring any penalty until December 31, given the taxes due after the revision have been paid. However, it is suggested the taxpayers must file the revised ITR as soon as possible, preferably before receiving an inquiry notice from the income tax department for the original ITR.
+
+Query: Another taxpayer stated that his ITR has already been processed, and he has received a refund as claimed in the original return. He is asking, what would happen in case of filing a revision of the IT return and the refund amount is not what was initially warranted.
+
+Solution: The reason for filing a revised ITR is to correct any inaccuracies found in the original submission. It is recommended to file a revised return as soon as correct information becomes available and discrepancies in the initial return are detected. Even in case the refund amount received matches the initial claim, it is crucial to provide accurate income details to the tax authorities, as they may still issue notices after the refund has been credited.
+
+In case after revising the income tax return, the refund amount is reduced, the tax department may issue a demand for the additional funds. Contrarily, if the revised return requests a higher refund amount than previously received, the excess amount will be refunded accordingly.
+
+Query: How to calculate income tax for non-residents?
+
+Solution: Taxability in India depends on various factors, including residency status, the source of income, and the location of income reception. An individual’s physical presence in India for a fiscal year (FY) determines their residence status. It includes both working and non-working days as well as the subsequent 10 fiscal years: If a person is an Indian citizen, even if he does not become a resident based on physical presence in India, he may still do so in the case of income sourced from India that exceeds Rs. 15 lakh. However, he will not become a resident in general based on the absence of tax liability under any other criteria of a similar structure. Residential status is dynamic and requires new settlements for each FY.
+
+A person who meets the requirements to be considered a resident and ordinarily resident (ROR) must record all of their overseas assets on their income tax return(ITR) in India and pay taxes on their worldwide income there. Additionally, the kind of income as well as the amount produced from such foreign assets throughout the relevant FY have been offered for taxation in the India income tax return and must be disclosed concerning each foreign asset.
+
+Income received or deemed to be received in India, income accruing or arising outside of India if the income is derived from a business managed in or a profession settled in India (for RNOR), and income received or deemed to be received in India are all taxable to an individual who qualifies as a non-resident (NR) or resident but not ordinarily resident (RNOR).
+Since you have not been in India for the past four years, providing your income from India is less than 1,500,000, you may be eligible to be categorised under a non-resident of India. Salary earned from outside of India through employment and received outside of India will not be taxable in India if you are a non-resident. Salary income earned through employment performed outside of India and income received directly in India is liable to tax in the country.
+
+In India, your personal income is liable to tax, and in this certain income sources are included like interest income from banks, dividend income from shares, mutual funds, etc., and rental income from house property can also be considered. There are four instalments (15% by 15 June, 45% by 15 September, 75% by 15 December, and 100% by 15 March) through which you can deposit income tax by way of advance tax or before filing a tax return by way of self-assessment tax with interest; the deadline for that is 31 July.
+
+Query: How Can I Switch to the New Tax Regime if I File a Belated Income Tax Return?
+
+Solution: The deadline for filing ITR for FY 2022-23 (AY 2023-24) was July 31, 2023. Taxpayers who have not filed their returns yet can file their returns with a late fee.
+
+Belated ITR filing is permitted under Section 139(4) of the Income Tax Act, 1961. However, you have to pay a fine of Rs. 5,000 and if the income is below 5 lakh then the fine will be Rs. 1,000. And for belated ITR filing with a late fee, the date provided is December 31, 2023. There is another charge which is a panel interest charge on the total tax payment so the department is constantly encouraging taxpayers to file their returns as soon as possible.
+
+The taxpayers are allowed to switch between the old and new tax regimes while ITR filing. If you have several deductions to claim under the different sections of the IT Act and also including Section 80C for tax-saving investments, the old tax regime could be a better option in this regard.
+
+Moreover, the New tax regime may offer you some other benefits and you may find yourself in a dilemma when wanting to switch from the old to the new tax regime. The reason for that may be you realized that there are not as many deductions as thought and also want to benefit from lower income tax rates in the New tax regime. If you want to know if is it allowed to switch the tax regime when filing a belated ITR, read the article till the end.
+
+Provisions for Opt-in
+
+Even though the New Tax Regime was introduced in the Union Budget of 2020, for many taxpayers in India, it is not the default tax regime. Taxpayers are required to file Form 10-IE if they want to use New Tax Regime.
+
+However, to come under the New Tax Regime, it can be done within the specified due date for filing your returns which was July 31 for FY 2022-23. For taxpayers who want to audit their accounts mandatorily, October 31 is the last date.
+
+Some taxpayers have the desire to availing lower tax benefits under the New Tax Regime, they have to do this before the deadline. It is not possible to switch tax regimes when filing a belated ITR.
+
+Limitations in Addition
+
+Along with the deadline concerns for switching the tax regime, certain other limitations prevent taxpayers to do the same and they must be aware of this. Taxpayers with a salary and a house income, but not any business or professional earnings, are not allowed to switch between tax regimes. When these taxpayers switch to the New Tax Regime, they are permitted to switch back to the Old Regime only once. If they utilize this opportunity, they lose the ability to switch to the New Tax Regime in the future.
+
+Taxpayers having a professional or business income, however, can switch between the regimes by submitting the appropriate Form 10-IE within the specified timeline. Interestingly, while the law clearly states that taxpayers are required to switch to the New Tax Regime by filing their returns before the deadline which is July 31, there is no explicit provision indicating reverse can be possible. The law remains unclear to ascertain whether taxpayers can switch from the New Regime to the Old Tax Regime in case of belated filings.
+
+Query: Can you change the income tax regime when filing an ITR?
+
+Solution: In response to your query, yes, you can change the tax regime when filing your ITR. The tax regime that salaried employees select in FY 2023–24 must currently be disclosed to their employers. It is crucial as it will permit employers to deduct TDS in accordance with the tax regime that the employee has chosen.
+
+The Finance Act of 2023 recently changed the default tax system to the new tax regime. The founder of RSM, Dr Suresh Surana, noted that while a taxpayer can switch between the old and new tax regimes on an annual basis, individuals who get income from a business or a salaried person have the option to do the same only once.
+
+It is appropriate to keep in mind that, even though salaried people can switch between the old and new tax regimes on an annual basis, they have to give information to their employers at the start of the fiscal year of their choice. Failure to do so will result in a TDS deduction under Section 192 of the IT Act under the new tax regime under Section 115 BAC of the IT Act, which is the default tax regime. However, the ultimate decision about the tax regime can be made when the tax return is provided according to Section 139(1) of the IT Act,” he added.
+
+Salaried employees are required to choose a tax regime in April. If they are unable to do so, the employer will deduct taxes from their pay at the New Tax Regime rates.
+
+Therefore, salaried employees should consider the following aspects when choosing the tax regime:
+
+Concessional Tax Slab Rates
+
+On income above Rs. 10 lacks, there was an Rs. 2.5 lakh exemption under the previous tax system. The highest tax slab rate, at 30%, is the exemption rate. With five tax slab rates ranging from 5% to 30% and an exemption limit of up to Rs. 3,000,000, the new tax regime is more expensive than the three tax slab rates of the old tax regime. The maximum tax rate of 30% is applied on income above Rs. 15 lacks.
+
+Total Income (Rs.)	Tax Rate (Old Regime)	Total Income (Rs.)	Tax Rate (New Regime)
+Upto 2,50,000	Nil	Upto 3,00,000	Nil
+2,50,001 to 5,00,000	5%	3,00,001 to 6,00,000	5%
+5,00,001 to 10,00,000	20%	6,00,001 to 9,00,000	10%
+Above Rs. 15,00,000	30%	9,00,001 to 12,00,000	15%
+12,00,001 to 15,00,000
+20%
+Above Rs. 15,00,000	30%
+Tax Rebate Availability u/s of 87A
+
+According to Dr Surana, under the old tax system, a resident individual with a total income up to Rs. lakh would be given a complete rebate under Section 87A of the IT Act, which would result in a NIL effective tax rate. However, starting on April 1, 2023 (FY 2023–2024), anyone who chooses the New Tax Regime can apply for a complete tax refund under section 87A of the IT Act for total income up to Rs. 7 lacks.
+
+Reduced Highest Tax Surcharge Rates
+
+For total income surpassing Rs 5 crore, the highest tax surcharge rate has been reduced under the new tax system from 37% to 25%, reducing the tax rate from 42.744% to 39%.
+
+Claim Tax Deductions and Exemptions
+
+Dr Surana said that to claim the benefit of tax deductions and exemptions under the old tax regime, there were no restraints. For example, a taxpayer falls under the category of getting the benefits of the deduction if he has investments in tax-saving instruments, pays premiums on life or medical insurance policies, pays for his children’s schooling, makes home loan repayments, etc.
+
+Previously, these benefits included house rent allowance, leave travel allowance, and so on.
+He continued, the New Tax Regime only permits a select number of listed deductions, such as the standard salary deduction of Rs. 50,000 under Section 16(ia), the deduction for family pensions that are less than Rs. 15,000 or 1/3 of the pension, the deduction for the employer’s National Pension Scheme contribution under Section 80CCD(2) of the IT Act, etc.
+
+Query: My daughter is a non-resident Indian with a small rental income. Neither she nor her renter can afford to engage a CA to calculate and return the tax deducted at source (TDS) on this income to the income tax (I-T) department. Can she pay the TDS towards the rent to the department as an advance tax?
+
+Solution: According to the rules of section 195 of the Income Tax Act, the tenant, who is liable for the payment of rental income, must withhold taxes at the established rates and deposit them with the tax authorities on a monthly grounds. The renter must also apply for a Tax Deduction Account Number (TAN) and submit quarterly withholding tax returns for the taxes that were duly withheld and deposited.
+
+The following measures may be considered if neither your daughter nor the renter is in a state to assure adherence to the aforementioned rules:
+
+If your daughter feels that no tax should be deducted from her rental income based on her level of income (including that income), and other considerations, she may contact the tax authorities to get a certificate of “Nil” income tax deduction. If and when received, the tenant—who in this situation serves as the tax deductor—will no longer be compelled to withhold taxes from the rental payments. If not, the renter would have to withhold taxes at the appropriate rate or at any lower rates that the tax authorities have authorized. If the renter doesn’t follow these rules, they might be declared to be in default and subject to interest and penalty clauses.
+If your daughter submits her annual ITR, includes the rental income in the return, pays the required taxes in advance or through self-assessment, and obtains a certificate from a CA in the required format, the tenant might not be regarded as an assessee in default and penalties might not be levied, subject to review by the authorities. However, up to a certain point, interest in non-withholding may still be due.
+Query: I’ve had a proprietorship job in the clothing sector for 4 years, 7 months, and 7 days. After the first week of November, the corporation terminated my position without explanation. There are now less than 10 workers at the company. How can I make a business gratuity claim?
+
+Solution: It should be mentioned that each business or institution with 10 or more employees is subject to the terms of The Payment of Gratuity Act, 1972. (except in the case of factories and establishments in specified sectors where there is no limit for the number of employees). Additionally, once the rules are in effect, they will continue to be in effect even if there are less than 10 employees.
+
+It is unclear from the information you supplied whether your organization must adhere to the terms of the Gratuity Act, of 1972, and this has to be further assessed in light of more facts.
+
+Query: Despite moving back to India in July 2022, I work for a US firm and receive a salary in the US account, even though I have been a US citizen for 17 years. How can I benefit from the DTAA on my salary earned before August? Do I require to file taxes in India on my salary earned before August or only after August?
+
+Solution: There are 3 kinds of residential status in India: Resident and Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR), and Non-Resident (NR).
+
+Residential status in India would be revealed on the total physical presence in India in the present Financial year (FY) and the foregoing 10 FYs as also the quantum of India-sourced income in the current FY. Residential status requires a new decision in every Fiscal year.
+
+Entitled as ROR, a person would be subjected to be taxed on worldwide income in India and would be needed to report the foreign incomes and assets held outside India in the tax return. A person entitled to an NR or RNOR would not be required to pay the tax in India on his foreign income (until obtained in India).
+
+Since you are a US citizen and moved back to India in the month of July, you might be entitled as RNOR of India for FY 2022-23 if your presence in India is 729 days or less in the period 1 April 2015 to 31 March 2022 or you entitled as NR of India in 9 out of 10 preceding FYs. As an RNOR, you would be levied with a tax on the subsequent incomes in India:
+
+Income obtained or deemed to be acquired in India;
+Income that arises in India;
+Income deemed to arise in India;
+Income arising outside India via business or profession set up in India.
+The salary income for the services directed in India would be acknowledged as deemed to arise in India. Hence the salary made through you during working in India from August would liable to tax in India despite being paid in the US account. The incurred salary as an RNOR in the US till July 2022 would not be liable for tax in India. As the salary obtained in the US the same might be subjected to be taxed in the US. In this situation, you might claim a specific advantage (either exemption or foreign tax credit) under the Double Taxation Avoidance Agreement (DTAA) between India and the US in that country, to prevent double taxation.
+
+Query: I purchased a flat whose cost is Rs 35 lakh in February last year with a bank loan. I paid the principal of Rs 1,33,951 along with the interest of Rs 1,70,049 in FY22. Rs 1.5 lakh would not be deducted by my employer beneath income tax section 80EEA for the first-time purchase of the house/flat. What method will I choose for the deduction seeing the situation?
+
+Solution: Under section 80EEA, some other interest payment deduction of Rs 1.5 lakh (post ending of the limit beneath Section 24(b)) would be furnished for those who are purchasing the home for the first time towards the loans opted regarding the affordable home worth up to Rs 45 lakh. The same deduction could be claimed till you would repaid your home loan. Rs 50,000 as an additional interest payment deduction under section 80EE post to exhausting the limit beneath Section 24(b) is authorized for first-time home buyers towards a property value up to Rs 50 lakh and loan amounts of up to Rs 35 lakh. When the purchaser claims the deductions beneath section 80EE then he could not claim for the deductions beneath Section 80EEA. Any TDS surplus over the final tax liability will get refunded post-return processing.
+
+Query: No tax would be levied on the income of NRI, when I furnished the ITR 2 when my income exceeds Rs 2.5 lakh then I was required to show the salary first complying with the exemptions. While furnishing the returns what method shall I choose for that?
+
+Solution: In various judicial pronouncements, it has been held that non-resident Indians may not be taxed in India for receiving a salary for services rendered outside the country in their Indian NRE accounts NRIs who used to earn interest on these NRE accounts would get free from the tax. The same would be reported that NRIs earning income in the salary form and the interest is more than Rs 2.5 lakh are needed to file the income return in ITR-2 form. Under tax treaties and claim refunds if the TDS would get deducted from the income then NRIs could avail the advantage. For the same, you are required to reconcile the TDS credit along with the advance tax as shown in Form 26AS under income tax.
+
+Query: To claim the advantage of HRA I live in my parent’s house. I furnish Rs 30,000 per month as rent to my father. Am I assumed to deduct TDS?
+
+Solution: Under section 194-IB, with effect from the date June 1, 2017, a person and HUF furnish a monthly rent of more than Rs 50,000 and will deduct a 5% TDS on rent. A TDS would not get deducted from you as the monthly rent furnished would not be more than Rs 50,000.
+
+Query: My husband obtained Rs 14 lakh through his mother as a gift post she sold her house in 2018. We had purchased a flat but unfortunately, we did not mention it in the income tax return for 2018. Since we got a notice beneath section 131 we want to do that. What is the method to do the same?
+
+Solution: A notice beneath section 131 is obtained when the assessing officer has the cause to suspect that, an income would get hidden. Through the view of the income tax, receipt of a gift from a relative would not trigger taxation that the same would be exempted in the hands of the receiver. But the same needs to be shown as exempted income in the schedule EI of the Income-tax return form. Since you do not show the received gift you received the notice. Accumulate all the documents seeks and send as per the due date and co-operative with the tax authorities in the proceedings.
+
+Query: I have a Post Office MIS (Monthly Income Scheme) with my wife. The interest is credited to my savings account. What is the method to calculate the tax on the interest?
+
+Solution: Interest earned on joint accounts would be levied to tax in the hands of both primary and secondary account holders. on the Post Office MIS, no TDS gets deducted, however, the interest will be taxed under the tax slab, to be notified in the schedule OS. Under section 80TTA one shall avail of the deduction of interest incurred on savings accounts held with the post office up to Rs 10,000. For senior citizens, the same limit would be Rs 50,000. These deductions might be availed during the furnishing of the income tax return. Moreover, interest on the post office savings bank account would be privileged to Rs 3500 for the single account holder and Rs 7000 in a joint account beneath section 10(15).
+
+Query: I used to work in Zambia since 2000 and send my salary to my NRE account in India. Would it be taxed in India? If yes then beneath which section do I show during furnishing the return?
+
+Solution: The same is done in several judicial pronouncements that only receipt of salary via NRI in his Indian NRE account for services directed outside India shall not taxable in India. Moreover, the interest earned by NRIs on these NRE accounts is having no tax payable. NRIs earning income in the form of salary and interest is more than Rs 2,50,000 are needed to file the income return in ITR-2 form. But, NRIs could avail the advantages beneath the tax treaties and avail refunds if the TDS is deducted from their income. Towards the same, you are required to reconcile TDS credit and advance tax as shown in Form 26AS. 
+
+Query: I bought a residential house in 1982 for Rs 55,000. I spent Rs 4 lakh in 1991 to renovate and construct the first floor. I sold the house for Rs 70,87,000 on November 27, 2021. What is the method to claim tax relief on long-term capital gains? I have paid Rs 70,870 as transaction tax. I have invested the money in a flat which is under construction.
+
+Solution: To calculate the capital gain on the property sale, since you have bought the property, the buying price will be more than the actual cost or FMV as of April 1, 2001, which is indexed for inflation and any cost of renovation made before April 1, 2001, will be refused.  moreover, if net consideration comes on sale is invested towards the buying of residential house property (one year before or within 2 years from the date of transfer) or for construction of a residential home in 3 years from the transfer date then the specific capital gains gets exempted beneath section 54F.
+
+The same exemption is permitted when a taxpayer does not have more than one residential house property on the transfer date. The LTCG computed would be taxed at 20%, along with the cess of 4%. Moreover, the tax furnished by you is TDS under section 194 IA where it needs a 1% tax to be levied by the purchaser while doing the payment of sale consideration.
+
+Query: As my employer is based in the United States, the salary is directly credited to my India account from the US account. Can you tell me what is the tax rate and under what section of the Income-Tax Act I need to file my return? Is there a tax rate applicable to this amount if I show it as professional fees instead of salary?
+
+Solution: In the US, salary income is taxed at ordinary slab rates applicable to residents under the heading ‘salaries’. Under Section 139, a tax return must be filed. Ordinary slab rates are also applied to income derived from professions. It is possible to reduce gross professional receipts by the number of actual expenditures and capital allowances that are incurred in order to earn professional income, and only the net income (after deductions) may be taxed.
+
+Read Also: Major Components of Updating ITR U/S 139(8A) from FY 2022-23
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+Query: Can you advise whether long-term capital gains on the sale of an existing flat held for ten years will be fully exempt if the proceeds are used to book a new flat within three years of selling the old flat?
+
+Solution: Capital gains income must be earned within one or two years after the purchase of the new flat. Three years are allowed for self-construction. To prove that the funds were invested under his ownership in a new residential property, the taxpayer must provide a registered deed or any other credible evidence.
+
+Query: A residential property I purchased in 2012 was sold at no capital gain. Currently, I am on a pension. Can I claim this sale as an income tax deduction?
+
+Solution: In order to file an income tax return, it is necessary to disclose all sources of income, regardless of the amount, otherwise the income tax department may raise a question or make adjustments due to mismatches. In the case of a sale of property, you must disclose the sale consideration, acquisition costs, and capital gains.
+
+Query: I filed my income tax return (ITR) in July 2022 but neither has it been processed till now, nor have I received any intimation from the income tax department. What should I do?
+
+Solution: It is assumed that your query refers to the income tax return for the financial year (FY) 2021-22. The tax return filed and duly verified is initially reviewed and processed by the tax authorities under the provisions of section 143(1) of the act for any prima facie adjustments required. Once the electronic processing is completed, an intimation is generated and sent to the taxpayer. As per the provisions, the tax authorities can’t send an intimation under section 143(1) after the expiry of nine months from the end of the FY in which the return is filed. In your case, as the tax return for FY 2021-22 was filed and verified during FY 2022-23, the intimation can be sent by 31 Dec ember 2023.
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+If a taxpayer does not receive any intimation within such period, the acknowledgement of the return filed may be deemed to be the intimation. In case you wish, you may still raise a grievance query through your online income-tax account to check on the status of processing.
+
+Also, please note that the processing of the return under section 143(1) of the Act may not be final as it is only a preliminary assessment of the tax return by the tax authorities. The tax department may still send a notice under other sections of the act, seeking more information in future.
+
+Query: Why it is Essential to Opt for the Correct ITR Form?
+
+Solution: It relies on the segment you comes in as there is 7 ITR forum for you to opt from furnishing the return. Towards the assessment year 2022-23 (the financial year 2021-22), forms ITR-1 and ITR-2 come under the most related forms towards the concern of the salaried persons. Furnishing the incorrect income tax return form shall give you an outcome in your returns remaining invalid.
+
+Query: I Missed Submitting Investment Proofs to the Employer, Can I Claim Tax Deductions?
+
+Solution: Yes, the last date ruled through the employers to submit the declarations regarding investments to claim the deductions beneath sections 80C, 80D, 80E, etc is Jan or Feb. But despite various reminders received from employers, various people point to skipping furnishing the proofs of the tax saver investments. This leads to the deductions of more amount of the taxes from the salary in the previous last 3 months of the fiscal year. If you do not furnish the proofs then you can insert the information inside your tax return form and avail of the deductions and tax refund.
+
+Query: What are the Most Mutual Flaws Built During the Furnishing of the ITR?
+
+Solution: Even the miniature errors built on the furnishing of the ITR could make your returns zero and empty. These flaws can be as easier as not selecting the correct assessment year. You indeed cross-check your bank account information. Inserting the wrong information can make the chances of getting your tax refund late.
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+A salaried person paying the taxes could opt for the old tax advantages regime and the amended system during the furnishing of the returns. You shall indeed need to mention the income obtain from the dividend inside your tax return forms for the current year.
+
+Query: What If I Missed Showing Some Income That I Had Earned?
+
+Solution: It is sometimes possible that people use to forget to show some of their specific incomes despite there being no intention. This is the concern that specifically through the salaried persons who depend on their Form 16 which does not consist of the information of the capital gains, fixed or savings deposit interest incomes, for example when the income tax council reveals this missing income you will then receive the notice for that.
+
+Query: Post Filing of the Tax Returns Do I Require the Verification Procedure?
+
+Solution: Yes as furnishing will not be acknowledged as completed unless you validate the returns. It should be performed within 120 days of furnishing your Income tax returns. However various people use to forget to do that even when the electronic procedure takes only some time to furnish that. You can likewise download the ITR-V, or acknowledgement form and transfer it physically to the tax department’s CPC office in Bengaluru.
+
+Query: Do I Choose the E-verification Method or the Physical Mode?
+
+Solution: Choosing the online method is the best option. The physical procedure is a complex process you need to download, print, and sign the hard copy prior to sending it to the Income Tax CPC, Bengaluru, through the post. While on the other side, it takes only some minutes through the process of e-verification. You can practice Aadhaar-OTP or your internet banking account, your pre-validated bank, or your Demat account to produce the electronic verification code (EVC) to perform the means.