[A.K]

Originally Posted by dailydriver

A colleague has, post all deductions, taxable income of ₹5,05,000/-.

He has never paid income tax and doesn't want to - at least this year.

The reasons are:

1. He likes his money to remain his!
2. He (a part time farmer) is afraid that his becoming a tax payer would rule him out of a series of government doles - PM Kisan Samman being one example.

But with ₹5,000 in excess of ₹5,00,000/-, he is left with no alternative other than to pay nearly ₹14,000/-.

Or so he thought!

I suggested him to make a 80G donation of ₹5,001/- to a charity of his choice that offers 100% exemption. This way, he is guaranteed of eating his cake and having it too.

I know this might not pass the litmus test of morality, but it sure isn't illegal.

Any thoughts?

Section 87A rebate is available for taxable income upto Rs. 700,000 which essentially brings the tax liability down to zero in most cases. Suggest you check with your CA once.

[vinu_h]

Folks I am receiving this error at the submission page despite having entered details of immovable property. What am I doing wrong and how do I fix it please ?

Thank you.

Edit - The postal code and details of the area did not save. It went through smoothly once I did.

[vsrivatsa]

Needed a quick help regarding the Old Regime vs New Regime.

This is for my mother who is a Senior Citizen - currently - the Income is only via Deposit Interest, SB Interest and PMVVY. As on date she is not paying any rent but she may in future based on situation foreseen.

I understand the HRA Exemption is not allowed in New Regime. So, question is this year can she pay tax under New Regime and next year based on situation of House Rent again go back to Old Regime? How many times is a person allowed to switch back and forth - is there a limit?

[DK_accord]

Originally Posted by vsrivatsa

How many times is a person allowed to switch back and forth - is there a limit?

For an individual, at the time of filing ITR, you can select the regime (old/new) each year. So there is no limit as such. You can decide that on the basis of which regime tax outgo is the least and you can use that.

[rx100]

Originally Posted by vsrivatsa

Needed a quick help regarding the Old Regime vs New Regime.

This is for my mother who is a Senior Citizen - currently - the Income is only via Deposit Interest, SB Interest and PMVVY. As on date she is not paying any rent but she may in future based on situation foreseen.

I understand the HRA Exemption is not allowed in New Regime.

I don’t think one can claim HRA if there is no salary income. And regarding new vs old, the one you chose during the tax return filing is the final one and each year it get reset.

[Bomi]

Originally Posted by vsrivatsa

Needed a quick help regarding the Old Regime vs New Regime.

HRA has already been explained. As far as Bank & FD Interest income is concerned, the old regime has a deduction for Senior citizens (Section 80TTB) of a max Rs. 50K. The new regime does not have any deductible benefits, but the tax rate is lower.

You can actually see the effect of both regimes on your tax liability while filing your return in online mode.

1. Select old regime at the beginning of filing.
2. Complete all applicable income schedules and "confirm" them
3. Lastly you will come to schedule TTI (Tax on Total Income) which will show your tax liability. note down that number and log out. (do not proceed to verification)
4. Log in again and this time select new regime.
5. All schedules are already filled, you need to confirm them again.
6. Schedule TTI will show tax status under new regime. Select whichever is more beneficial to you, and complete filing.

[hothatchaway]

There is also a tax calculator on the incometax.gov.in site, available on the left sidebar of the login page. Choose advanced and then the choice of regime to calculate your tax liability.

For those with only interest income, the new regime is likely to be more advantageous

[kkSolo]

I and some people in my contacts have been getting Tax Dues, when filing ITR. This is despite all of us having only salaries as the income source and all are in the new regime. This is the first time i'm getting such a due despite the TDS. Is there some error ? Does anyone know or are there similar experience in your circles?

[SLK]

Originally Posted by kkSolo

I and some people in my contacts have been getting Tax Dues, when filing ITR. This is despite all of us having only salaries as the income source and all are in the new regime. This is the first time i'm getting such a due despite the TDS. Is there some error ? Does anyone know or are there similar experience in your circles?

Should not be too complex to figure out. Look at your Form 16 received from the employer and compare that with the ITR filing computation, see what is different.

ITR systems automatically capture interest income now-a-days, including interest from savings bank account, which a lot of salaried people do not disclose to the employer.

[kkSolo]

Originally Posted by SLK

Should not be too complex to figure out. Look at your Form 16 received from the employer and compare that with the ITR filing computation, see what is different.

Also to add to the mix, I and the others have changed employers mid year.

I've been going through the Form 16s and seems there is a discrepancy. I may be wrong but seems like my previous employer seems to have not deducted TDS or atleast not the right value. Now I don't know what are the chances of that.

I have gone through the tax paid by the employers and those in the Form 16, it all adds up. But when filing ITR, for the cumulative tax for the year, there seems to a large gap arising. I don't know where the errors is.

Are there cases of employers calculating tax wrong and not paying at source, leading to surprises for employees? Is there anything that could be done about it, especially in case if you're not currently employed with the same organisations?

Also the tax due value seems to change, which is the most bothersome. I saw an initial due on cleartax as ~3 lakhs. I saw an earlier SMS in April stating cumulative tax was 3.5 lakh. Yesterday i received another SMS stating it's 4 lakhs.

[hothatchaway]

Originally Posted by kkSolo

Also to add to the mix, I and the others have changed employers mid year.

I've been going through the Form 16s and seems there is a discrepancy. I may be wrong but seems like my previous employer seems to have not deducted TDS or atleast not the right value. Now I dont know what are the chances of that...

It is unlikely for companies to compute incorrect IT liability for TDS deductions, unless the employee himself has not disclosed accurately, notably income from a previous employer during the same FY or other income.

In case you have switched jobs during the FY, it's important to disclose income already earned, else your current employer will assume that theirs is the only employment you had during the FY and give you exemptions, something your previous employer has already given you. That leads to lower TDS but your liability remains.

[kkSolo]

Originally Posted by hothatchaway

It is unlikely for companies to compute incorrect IT liability for TDS deductions, unless the employee himself has not disclosed accurately, notably income from a previous employer during the same FY or other income.
.

This is really helpful! I believe this could be the issue. I remember having a delay in sharing the form 16 but it got resolved. Maybe the calculations aren't correct with the current employer. I guess this needs to be looked into.

[SLK]

Originally Posted by kkSolo

Also to add to the mix, I and the others have changed employers mid year.

Yes, and it can get tricky. When you resign mid-year, the employer does not have information about the rest of the year and hence they 'can' (I'm not too sure) assume the part year income as the entire year and then deduct less tax.

Basically, the previous employer's form 16 will be based on the total income you earned from that employer rather than projecting the same income for the rest of the year. i.e. you could be in a lower slab for the part year!

[GHPBrezzinBy]

Originally Posted by kkSolo

I and some people in my contacts have been getting Tax Dues, when filing ITR. This is despite all of us having only salaries as the income source and all are in the new regime. This is the first time i'm getting such a due despite the TDS. Is there some error ? Does anyone know or are there similar experience in your circles?

Same for me . I had to switch jobs in-between last financial year, my current payroll team asked me for the tax computation from old employer almost near end of March 2024, which I couldn't provide and the payroll said I can correct things while filing tax return. I didn't think much of it at the time and I do not know what really happened, now I have first time in my life tax arrears . I have reached out one of my friends auditor who he vouches as a wizard. The CA promised he would look into it.

I mean the arrears are close to 2 big Ls. Here's hoping the CA does his magic and waives off any and all tax arrear. I haven't filed returns yet. I just did the math and was confused at first, then it dawned on me that I messed up real bad.

[warrioraks]

Originally Posted by GHPBrezzinBy

I mean the arrears are close to 2 big Ls. Here's hoping the CA does his magic and waives off any and all tax arrear. I haven't filed returns yet. I just did the math and was confused at first, then it dawned on me that I messed up real bad.

The IT department charges interest on late tax payments. If I am not wrong, it is around 1% per month. So it would be better for you to resolve it asap.

My guess - Your cumulative annual income added across employers falls in a higher tax bracket as compared to the tax % your employers charged individually. Also if you took the same tax benefit (Example - 1.5 lakhs under 80C) across both the employers, that can inflate your take home salary by incorrectly calculating the taxable income.

I have faced this twice in my life and there is no escaping the long arms of the tax department.