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  • Category: Miscellaneous
    Points:5

    Raise queries and/or share your knowledge of filing IT return for FY 2023-24 (AY 2024-25)

    The last date of filing income tax return for the financial year 2023-24 (assessment year 2024-25) is 31st July 2024. Many people file their returns themselves as the IT site has become modular (consisting of various schedules) and is also quite interactive to guide us in the matter.
    While filing return we get some doubts in our minds. My idea in posting this thread is to raise and resolve the queries in this regard.
    I would request those members who are filing return themselves to raise their queries if any and/or share anything that is important in this respect so that all the members who are filing the return could be benefited by that knowledge sharing.
  • #780733

    Points:4
    From my experience I have noticed that if you are heavily investing in Fixed Deposits or Mutual Funds or having any insurance policy, then you should never opt for the new tax regime because you will not be able to get any refund for any TDS on these investments. New tax regime is only good for those where income is more than 7 lakhs and they haven't invested there money. You need to make sure that there is any TDS on your investments in the current financial year and then only take decision. Older tax regime is better if you are heavily invested and there is a TDS deduction after redemption.
    Humble yourself or life will do it for you!

  • #780736

    Points:4
    Being a senior citizen, I would like to save some revenue if possible by way of filling out the income tax format. So far, I have invested money in the Pradhan Mantri Yojna and some amount of money in the Bank - fixed deposits. I opted for a new tax regime and this pattern is still my choice.
    Unfortunately, I had been a member of the EPS 1995 Scheme and an amount below Rs 2000/- has been credited to my account regularly since 2010 - with no hike in the amount. We have been regularly assured of some additional hike but nothing has happened so far.

  • #780742

    Points:5
    I have submitted my self ITR already. I contacted a Chartered accountant and got it done through him. So far I never opted for the new tax regime. This year also the old tax regime is followed. This year I have sold some shares and hence there is some capital gains issue is there. How to calculate the gain is not known to me. My auditor did it and I have paid some tax and filed the returns.
    I always feel it is better to go to a tax consultant for filing our returns. He may charge a little money. But once he scrutinises our ITR, there will not be any further queries I feel. Even my two sons go to a tax consultant to file their ITR.
    When we make some donations which are exempted from IT, we have to claim them by showing proof in the returns. As mentioned by Jha, I am also a member of EPS and I am also getting a pension of around 2000 rupees from 2016. There is no increase in this eight years in that amount.
    drrao
    always confident

  • #780747

    Points:4
    On last Saturday, I submitted my wife's Income Tax return just like previous years (in accordance with the unwritten and unspoken agreement between us). I did not face any difficulty.
    Yesterday, I have received my Form-16 from the office. I am planning to file my own return in the coming week after calculating other income. I hope I will be able to file it without much difficulty.
    I appreciate Umesh Sir's present effort calling for mutual help among members during the filing of Income Tax return.
    Billo Rani kahon to abhi jaan de doon: Oh dear Billo, if you ask, I will give my life

  • #780752

    Points:5
    I highly appreciate so many responses to this thread and yes the basic idea to float this thread was to interchange information and knowledge in this area and get benefited.

    Coming to the response by Ajay Gupta #780733, I am hereby giving an example of Income Tax for a person (age is less than 60) having income about 9 lakhs during FY 2023-24.
    Example:
    (1) Income:
    Salary - 7.8 lakh.
    Interest from FD - 0.8 lakh.
    Other taxable income - 0.8 lakh.
    Total income - 9.4 lakh
    Non taxable part in salary - 0.4 lakh
    So income = 9.4 - 0.4 = 9.0 lakh
    (2) Tax in old regime:
    Let us assume the person saves 1.5 lakh in investments allowed for 80C deductions. Add to it the standard deduction of 0.5 lakh.
    So taxable income = 9.0 - 2.0 = 7.0 lakh.
    Tax = 52500+cess
    (3) New regime:
    In new regime 80C is not allowed. So deduction is only the standard deduction equal to 0.5 lakh.
    So taxable income = 9.0 - 0.5 = 8.5 lakh.
    Tax = 40000+cess

    In above example new regime seems to be better. Please note that in new regime slab rates were reduced significantly.

    I would request Ajay Gupta to go through this and change the elements and income ranges to find out which regime is better in a particular case.

    I will also request the knowledgeable members to check the calculations and point out the mistakes if any. Thanks.
    Knowledge is power.

  • #780753

    Points:4
    Umesh Sir,

    Standard deduction is only available in Old tax regime. In new tax regime you can only get rebate up to 7.5 lakhs income under section 87A. It means you have to pay tax on income exceeding 7.5 lakhs according to the slab. There are major deductions excluded from new tax regime, which is not beneficial for people having investment in mutual funds, insurance policies, health insurance, home loan, and FDs or RDs. I think it is possible to pay nil income taxes on 9 lakhs income with all the deductions included.
    Humble yourself or life will do it for you!

  • #780754

    Points:2
    Umesh Sir, sorry for the standard deduction part. It is still added to make it 7.5 lakhs. Standard deduction(50000) is still allowed in both old and new tax regime. In case, you have any medical insurance or mutual funds (ELSS) you can claim deductions. If not then new tax regime is better in your case.
    Humble yourself or life will do it for you!

  • #780759

    Points:3
    I think many people are now choosing the new regime. Only the people having good savings in allowed deduction categories are going for old regime.
    In the new regime the tax percentage in lower slabs are less as compared to the old regime and that is the main factor which is bringing the tax to lower side in new regime.
    As many people are getting their IT returns filed through some IT agent or CA, these aspects are being considered by them.
    Thoughts exchanged is knowledge gained.

  • #780760

    Points:4
    Ajay Gupta, thanks for your posts and I want to mention that in most of the cases new tax regime is better except a few cases where income is low and allowed deductions are high.
    I would suggest that people should calculate their tax under both the regimes before exercising the option for choosing between old regime and new regime.
    Every year Govt is gradually reducing the tax rates in the various slabs of income from 2.5 lakh to 10 lakh. Govt wants that finally new tax regime should attract the tax payer so that Govt can close down the old regime option giving relief to the IT department and their servers in this massive work. Finance Ministry will like to have a simple system having same option for everyone.
    Knowledge is power.

  • #780774

    Points:2
    In new tax regime the basic exemption limit for income tax is 3.0 lakhs and above that and upto 6.0 lakhs tax rate is only 5%. From 6.0 lakh to 7.5 lakh tax rate is 10%.
    I am told that a person having taxable income of 7.0 lakhs will not have to pay any tax under the new regime.
    Any explanation how it is?
    Thoughts exchanged is knowledge gained.

  • #780780

    Points:5
    The slabs in the new tax regime are more and a 30% tax will come only for people with 15L taxable income whereas in the old tax regime, it is 10L.
    Total Income (Rate of Tax)
    up to Rs.3,00,000 (NIL)
    Rs.3,00,001- Rs.6,00,000 (5%)
    Rs.6,00,001- Rs.9,00,000 (10%)
    Rs.9,00,001- Rs.12,00,000 (15%)
    Rs.12,00,001- Rs.15,00,000 (20%)
    Rs.15,00,001 and above ((30%)

    In the interim budget proposed by the government for 2024, to encourage people to opt for the new regime, people with income up to Rs7/- lakhs are exempted from paying IT. Earlier it was Rs.5/ Lakhs. But the threshold income is Rs.5/- lakhs only. That means people who have above Rs.7/- should pay tax for the income over and above Rs. 5 Lakhs. This is what I understand from an auditor. This is applicable from the financial year 2024-24.
    drrao
    always confident

  • #780783

    Points:3
    Dr Rao, thanks for the explanation. What I understand now is that in new regime I need not to pay any tax upto 7.0 lakh.
    If I calculate tax at that point then in new regime it comes about Rs 25000. But as the taxable income does not exceed 7.0 lakh this Rs 25000 becomes zero.
    I think it is a big facility in new tax regime and those who do not have taxable income more than 7.0 lakh would get benefited upto a maximum of Rs 25000.
    Thoughts exchanged is knowledge gained.

  • #780798

    Points:3
    I have calculated and re-calculated again and again. For a person who is in the 30% tax bracket, there is very little difference between the old tax regime and new tax regime. However, if a tax-payee has taken a home loan and is paying EMI, he/she has a marginal advantage, if old tax regime is opted.
    As presently I don't have any home loan, I have opted for new tax regime.
    Billo Rani kahon to abhi jaan de doon: Oh dear Billo, if you ask, I will give my life

  • #780800

    Points:3
    Partha, you are quite right because people who are in 30% tax bracket are paying their major tax in that slab and minor gains in lower slabs is not going to matter much. So they can go for new regime.
    I have also observed that during last 2-3 years Govt has gradually lowered tax in lower slabs with an objective of decreasing the difference in tax outgo between old and new regime.
    Knowledge is power.

  • #780804

    Points:2
    The budget session of parliament is going to be held in the last week of this month. Do you think that Govt may announce some more relief for the people having income below Rs 10 lakh per annum?
    Thoughts exchanged is knowledge gained.

  • #780811

    Points:3
    Already in the interim budget the tax for the person who has a maximum of Rs. Seven lakhs income some benefit has been announced. So I don't think any other benefit will be announced. However, let us wait and see. What Partha said is correct. For the persons who are in the 30% tax bracket, the difference in tax will be marginal between the two systems. However if there is some capital gain income it is better to go for the old tax regime only, I feel.
    drrao
    always confident

  • #780814

    Points:3
    Dr Rao, #780811, capital gain tax (generally it is long term gain until a person sells his shares/units within a year) is separately levied and its rate is different so that would not make any difference.
    Example:
    A person has a total taxable income of 16 lakhs including 4 lakhs from long term capital gain.
    He will have to pay normal tax on 12 lakhs and special rate tax on 4 lakhs. His total tax liability would be the addition of these two.
    Knowledge is power.

  • #780818

    Points:3
    In the old tax regime, there were some exemptions for tax payment for the income we got under capital gains. If we reinvest this money in some other capital expenditure we need not pay tax. At the same time, we need not pay tax on the full income we got from these capital gains. Whether the same is applicable in the new tax regime, I am not sure. But an auditor told me it is better if we opt for the old tax regime when we have some income in this head.
    drrao
    always confident

  • #780824

    Points:2
    Dr Rao, #780818, the facility of investing the gain of selling property in buying another property is available in the new regime also. The long term capital gain on property is the gain when it is sold after 24 months of its purchase.
    This is covered under section 54 of Income Tax.
    Knowledge is power.

  • #780920

    Points:2
    In the coming final budget session in parliament scheduled in the last week of July 2024, some people are hoping that Govt may announce some reliefs for senior citizens. What do the members think about that?
    Thoughts exchanged is knowledge gained.

  • #780921

    Points:2
    I do not think the government will give some relief to Senior Citizens. There were many rumours that the government would increase the pension for EPF pension holders. But nothing happened. Same is the case with this also.
    drrao
    always confident

  • #780923

    Points:2
    I also came to know that some people are expecting some reliefs in this budget session not only for the seniors but for all especially those who have income less than Rs 8 lakhs per annum. Let us wait and see what happens in this final discussion on budget.
    Knowledge is power.

  • #780934

    Points:2
    My two sons are taking housing loans. Even then their auditor advised them to go with the new tax regime only. Both tool loans this year only and hence they approached the auditor and he suggested they go for the new system only.
    drrao
    always confident

  • #780938

    Points:4
    Before every budget, we, the middle-class tax-payers, always expect some tax benefits to be announced in the budget, but every time, we get disheartened. So, I feel that without seeking tax benefits, we must try to explore investment avenues to get huge return, so that, the return can compensate for the increasing deduction of income tax.

    For example, during the last two years, Sensex or Nifty is giving return at the rate of more than 20% p.a. So, if a person has invested in an index-based mutual fund through SIP route, by now, he or she has made a huge profit which is much more than the income tax accrued on that investor.
    Billo Rani kahon to abhi jaan de doon: Oh dear Billo, if you ask, I will give my life

  • #780943

    Points:5
    Salaried class will always be the target of income tax department because most of the people in this country are middle class people. If government keeps giving middle class people tax relief, they will lose out on huge revenue. I don't think I there will be any respite to middle class citizens in this country. Even GST collections is at record high and government is collecting huge tax every year from their citizen. Due to the record tax revenue share market is running at a top speed, but their is a risk in share market. Past performance of share market doesn't guarantee future performance. Therefore, people who invest based on past performances of mutual fund might be disappointed for the next few years. Still India is a growth story and by 2030 or in long term share market is surely going up. People can take benefit of ELSS if they want tax benefit along with equity investment. Market will correct for sure in coming years because it has been rising non-stop for the past few years. Many people will surely curse the share market after watching the returns of next few years because market doesn't go up in a straight line.
    Humble yourself or life will do it for you!

  • #780952

    Points:2
    Partha #780938 has mentioned an interesting thing that middle class is always expecting some tax benefits from the Govt. Yes, that is the mindset of middle class. I agree that instead of doing that it would be prudent to concentrate on earning better returns on investments.
    Share market is always a risky place but when risk is more then only the returns would be high.
    Knowledge is power.

  • #781016

    Points:2
    I had filed my IT return a few days back and I was surprised to get my assessment done and email received from the IT department within 3-4 days. It is remarkable.
    Knowledge is power.

  • #781021

    Points:1
    Presently I am ready for submit ITR but I confused on my dividend . I got about Rs. 20, 000 through dividend but all amount paid as tax.
    What I do to save this amount?. My Total yearly income about 7,74000 including Dividend.
    Phagu Mahato
    Success occurs when opportunity and preparation meet.

  • #781251

    Points:5
    At last, I filed my Income Tax Return for FY 2023-24 today successfully just a while ago.
    It was just a one sided affair. The IT department had a pre-prepared data . It was not easy to verify each and every figure mathematically. So I just made a rough guess work, compared with my previous year return and gave my validation and filed the return by the Aadhar OTP e verification. I have got the E-acknowledgement too.

    Even after the TDS I had some residual tax to pay. The procedure was a bit confusing as the challan was auto generated and being unfamiliar had to do a lot of trial and error approach. I completed up to this stage yesterday night itself. With the mandate generated printout, I went to my bank today and remitted the residual tax amount by NEFT as per the guidelines in IT website.
    But when I wanted to incorporate this tax paid details in my return, I had to face difficulties and failure many times, as the guidelines were not straight and user friendly. It was after many trials and searches, I could add the details and at last everything became successful.

    I was surprised to see the total amount fresh term deposits opened in the financial year in the pre-generated Annual Income Statement But actually they were all renewals of matured deposits or re- scheduling of existing deposit amounts for getting benefit of higher interest rates. Similarly the quarterly interest on my bank deposits have many entries and in the first and last quarter of the financial year the banks give the pro-rata interest , it is not easy for ordinary people to verify the correctness of the figures submitted by the banks. There also it is not straight and simple, but confusing.

    Though I had some Housing Loan repayment a small amount of donation etc., as the amount was not much, the tax in the old regime was about 8000 more than the new regime. Hence I was compelled to file this year's return under new scheme.

    All said, my tax for the last FY was about 8% plus overall or about one month's gross income. Throughout my career it was almost consistently about two months' income irrespective of different tax changes and maximum possible small savings.

  • #781299

    Points:2
    Refer my post above dated 24 July 2024.
    I have since received the intimation u/s 143(1) of Income Tax act , that says " Your return for A>Y 2024-25 has ben processed. There is no payment due".

    As I had paid the exact amount demanded while filing the return, there is no refund nor dues. So much good.

  • #781408

    Points:4
    Phagu Mahato, #781021

    Dividend is taxable and is added to the income of the person.

    In your case the total yearly income is Rs 774000 (including dividend). On this you have to pay (in new regime for FY2023-24) tax as per the tax slabs.
    I assume that the above amount of 774000 does not include any non taxable part otherwise we have to remove it before calculating tax.

    There is no way to avoid this tax at the present stage but you can replan your investments for the next year by switching from dividend option to long term gain option. Long term gain tax rate is less.
    Knowledge is power.


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