[binand]

Originally Posted by raksrules

Yes I will ask her. But even when I go online to put a 5.5L CTC and the figures as you see in the screenshot (HRA, PF, Basic etc), I get no income tax there too. So it seems something is right.

If your taxable income is below 5L you don't have to pay any tax (your entire tax liability can be deducted). My guess is that they are bringing her taxable income below 5L - that HRA is tax-exempted, for example (the actual rule is a complicated one though).

[raksrules]

Originally Posted by binand

If your taxable income is below 5L you don't have to pay any tax (your entire tax liability can be deducted). My guess is that they are bringing her taxable income below 5L - that HRA is tax-exempted, for example (the actual rule is a complicated one though).

But when I check online, the slabs say..

0 - 2.5L -> Exempt
2.5L - 5L -> 5%

So considering gross of 5.5L, and then doing deduction of 80c and standard deduction 50K, the income becomes 5.5L - 2L = 3.5L. Now if we have no tax on 0 to 2.5 then remainder is 1L (3.5L-2.5L) on which tax of 5K for the year should be there right?

I will ask her about the taxation and if any total salary thing document she has but for now trying to ask people here on what kind of calculation is being taken into account.


On a related note, if she is not liable for any income tax right now (with her 21.6K PF only contributing 80c), then I don't need to bother with any more 80c investments right? I know it is personal choice but I (she basically) don't have any pressure to fulfill the 80c kitty to get any deductions right?

The reason I ask is that if the answer to above question is No then I can consider a mutual fund which is not ELSS.

[saket77]

Originally Posted by raksrules

But when I check online, the slabs say..

0 - 2.5L -> Exempt
2.5L - 5L -> 5%

So considering gross of 5.5L, and then doing deduction of 80c and standard deduction 50K, the income becomes 5.5L - 2L = 3.5L. Now if we have no tax on 0 to 2.5 then remainder is 1L (3.5L-2.5L) on which tax of 5K for the year should be there right?

Right but there's a twist called Sec.87A.
This provides a tax rebate of Rs. 12,500/- if your income is less than 5L; so effectively one doesn't pay any tax till this 5L limit.

[raksrules]

Originally Posted by saket77

Right but there's a twist called Sec.87A.
This provides a tax rebate of Rs. 12,500/- if your income is less than 5L; so effectively one doesn't pay any tax till this 5L limit.

Oh is it, so until the tax is less than Rs. 12500, she will not pay any tax. Only if the 5% comes to be more than 12.5K, the remainder will have to paid as tax right?

[saket77]

Originally Posted by raksrules

Oh is it, so until the tax is less than Rs. 12500, she will not pay any tax. Only if the 5% comes to be more than 12.5K, the remainder will have to paid as tax right?

Half right
If the tax comes more than 12,500/-; the entire tax is payable- not just the remainder. So, effectively, only those are befitted whose income is less than 5L.

[binand]

Originally Posted by raksrules

Now if we have no tax on 0 to 2.5 then remainder is 1L (3.5L-2.5L) on which tax of 5K for the year should be there right?

If your taxable income is above 2.5L but below 5L, you have no tax to pay. Under section 87A in these cases there is a further deduction with a cap of 12.5K available (which basically covers all your tax due).

Originally Posted by raksrules

if she is not liable for any income tax right now (with her 21.6K PF only contributing 80c), then I don't need to bother with any more 80c investments right?

You have to figure out how her employer is bringing her taxable income to below 5L. There might be some assumptions involved (eg: is she actually eligible for 7.5K pm HRA exemption?) which might not be valid. At the end of the financial year they will ask her to provide supporting documents for all these assumptions and if she can't do that - there will be an outsized tax deduction.

[raksrules]

Originally Posted by binand

You have to figure out how her employer is bringing her taxable income to below 5L. There might be some assumptions involved (eg: is she actually eligible for 7.5K pm HRA exemption?) which might not be valid. At the end of the financial year they will ask her to provide supporting documents for all these assumptions and if she can't do that - there will be an outsized tax deduction.

Yes this is exactly what I was thinking. She is not producing any HRA receipt to her company and I am not sure if she has already given Investment declaration to her company which is causing them to "assume" she will invest and then if she doesn't, at the end of FY, they will cut tax. I will get this clarified.

Thanks a lot everyone for answering everything patiently.

[searacer932]

Team,

Has anyone filed TAX return for FY-22? Last year I did the filing quite late due to numerous issues in the income tax portal. I think I did the filing only in December!

I don't want to be a guinea pig for this FY . If anyone has filed the I.T returns and if you could confirm that the portal works perfectly fine that will be much appreciated.

[thanixravindran]

In the TRACES, Q4 Salary credit and FD interest credit with TDS is now reflecting. However my TCS on my new car purchased in Jan 2022 is not showing up. I have sent a reminder to my dealer (KUN Skoda, Chennai) last month and was promised that it will show up by end of May. Now I suspect they have not deposited it against my PAN. What is the recourse I have to take? I have sent them a formal mail asking for the TCS certificate again.

I guess they have to pay penalty for the delayed TCS payment and pay it against my PAN now. But how do I make them deposit it? Is there any possibility I report this to Income Tax to make them deposit it, if they are dodging my request?

[Sukanta73]

For new car purchase TCS was taken from customer. Is there any way to claim back? If yes then how we can claim?

[thanixravindran]

Originally Posted by Sukanta73

For new car purchase TCS was taken from customer. Is there any way to claim back? If yes then how we can claim?

Yes, you can claim it back. This is done during the IT filing. TCS has to reflect in your Taxes Paid section (same way as TDS). For that assessment year, if you have paid excess tax including TCS, you will get it as refund. If you have any tax pending, it will be adjusted against total tax liabilities.

[sairamboko]

Originally Posted by thanixravindran

Yes, you can claim it back. This is done during the IT filing. TCS has to reflect in your Taxes Paid section (same way as TDS). For that assessment year, if you have paid excess tax including TCS, you will get it as refund. If you have any tax pending, it will be adjusted against total tax liabilities.

On a similar note, can i claim TCS for foreign travel package? It's showing in AIS.

[binand]

Originally Posted by sairamboko

On a similar note, can i claim TCS for foreign travel package? It's showing in AIS.

Yes, in schedule TTI (should appear pre-filled).

[thanixravindran]

Originally Posted by sairamboko

On a similar note, can i claim TCS for foreign travel package? It's showing in AIS.

Yes. TCS is not exactly a tax on Income as it is levied on the spend and is sort of a check sum for IT department to track high value transactions. So you can claim it back during returns filing after adjusting with your tax outstanding, if any.

My problem is it is not yet reflecting in my AIS/26AS and hence following up with my dealer.

[skumare]

Three queries and thanks in advance for taking your time to answer them:
a) If a person receives a gift from a family member (exempted from gift tax), via transfer to bank account, do we still need to fill this in the ITR form? What details of the donors are required to be filled? Is PAN/Aadhar or both of the donor mandatory?
b) Expenses incurred on improving a property (flat/plot) before selling - can we use indexation on them or are these expenses to be deducted without indexation?
c) Quite a few of dividends that I received during FY-22 are still not reflected in Form26/AIS? Is there any date till which I need to wait or file the return as per my calculation of the TDS? Should I pay *full* tax on dividends which are not reflected in TDS form and claim the TDS portion once FOrm26 is populated or assume TDS would have been deposited and deduct that from my tax payable?