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By Chirag Nangia
I’m working in an IT firm. My wage is Rs 6 lakh every year and by mistake I opted for the brand new tax regime and tax was deducted. If I had opted for the previous tax regime there wouldn’t have been any tax to pay. How can I alter to the previous regime?
—Satish Kumar Reddy
Beneath the brand new concessional tax charge regime, people can provide their whole earnings at decrease slab charge prescribed, offered they forgo sure specified deductions and exemptions. This regime is optionally available and the choice could be exercised in each tax yr if the taxpayer doesn’t have enterprise or skilled earnings. Within the absence of knowledge, it’s assumed that you’re a salaried worker, not having any earnings from enterprise or occupation.
It has been clarified by the CBDT that intimation to employer declaring intention to go for concessional tax regime shall solely be for the aim of TDS, which can’t be modified in the course of the yr. Nevertheless, on the time of submitting return of earnings, one might change to the previous regime. Thus, possibility on the time of submitting of return could also be completely different from intimation made by the worker to the employer. The ITR Type asks the selection of the person and tax is computed accordingly. The TDS in extra of the ultimate tax legal responsibility (ascertained after making an allowance for the allowable deductions/ exemptions), might thus be claimed as refund by choosing the previous regime within the ITR.
If my earnings from the sale of shares exceed the fundamental exemption restrict of Rs 2.5 lakh (a) will I’ve to pay each capital beneficial properties tax and earnings tax? (b) How do I really pay the tax?
Tax on capital beneficial properties is a part of earnings tax. Any long-term capital beneficial properties (LTCG) on switch of listed shares are taxed at 10%, if such beneficial properties are in extra of Rs 1 lakh in a monetary yr and Securities Transaction Tax (STT) has been duly paid. Different LTCG are taxed at 20%.
Quick time period capital beneficial properties (STCG) are taxable at appli-cable slab charges. The speed is 15% if STCG come up on sale of listed fairness on which STT has been paid. A resident particular person might modify the fundamental exemption restrict towards LTCG/ STCG, after making changes of different earnings. With the intention to discharge your tax legal responsibility, you’ll have to file Revenue Tax Return type. You’ll be able to pay the tax by making cost by means of an authorised financial institution or by means of the web by availing e-tax cost facility.
The author is director, Nangia Andersen India. Ship your queries to firstname.lastname@example.org