Total income of an individual from all sources of income like salary, income from house property, etc. is the gross total income.

Gross total income is the total income of an individual from all sources of income.
From the gross total income, certain deductions can be made under various sections like Sec 80C, 80D, etc. The amount arrived at after deducting deductions is called total income or taxable income.
Total Income = (Gross total income) – (Deductions permitted)

No, deductions can be claimed only for those expenses which are provided under the Income Tax Act.

The rebate under Sec 87A has been revised to Rs 12,500/- for FY 2019-20, i.e, Assessment year 2020-21.

Rebate under Sec 87A is available only to individuals. Hence any person other than individual cannot claim rebate under Sec 87A.

No document, be it proof of investment, TDS certificate, etc. needs to be attached along with the ITR. However, these documents need to be retained by the taxpayer and produced before the tax authorities when demanded, like during assessment, inquiry, etc.

The excess tax paid can be claimed as refund while filing IT returns. Once your return has been processed and if the ITR department accepts your refund claim, the refund amount would be electronically credited into your bank account.

If your estimated tax liability exceeds Rs 10,000 for a financial year, then you are liable to pay advance tax by the due date prescribed.

Resident senior citizens, without any income from income or profession, are exempt from paying advance tax and can pay taxes at the time of filing returns by 31st July, after the end of the financial year.

Obtain Form 16A (TDS certificate issued by deductor) and verify it with Form 26AS. Bring any mismatch to the notice of the deductor and ask them to get the return rectified. However if you have proof of tax deducted like TDS certificate, you need not worry. As per Section 205, if tax has already been deducted, then taxpayer cannot be called upon to pay tax  to the extent to which tax has already been deducted from that income.

If you have income from business, you cannot. Else, yes you can switch from new tax regime to old tax regime in the next financial year.

As per Section 56(2)(x) of the Income Tax Act, 1961, any amount that is received by a person from his or her ‘relative’ is considered a gift and is not subject to income tax, irrespective of the amount that has been received from the relative. Since you, as a parents, fall under the ambit of the definition of a ‘relative’, any amount received by your own son from you will not be charge able tax.

You have mentioned that your son will soon turn 18 and that you will be opening a bank account, demat account and a PPF account for him by using your own funds, The funds that are used to open the above mentioned accounts shall also be considered gifts and, hence, shall not be chargeable to tax in the hand of your son, irrespective of the amount used to open the accounts.

Regarding clubbing provisions, only the income of a minor child (below the age of 18 years)is clubbed and is taxable in the hands of the parent whose income is more. However, this does no t hold for an adult child. So. any income of your son on becoming a major will not be clubbed with your income and shall be assessed separately in the hands of your son at the applicable tax slab rates, respectively. He Will also have to file a separate income tac return in such a case

Any gift of shares to a specified relative does not attract tax in the hands of recipient. As spouse of an individual falls under the defined ‘relative’, there will not be any tax implications in your wife’s hands on account of receipt of shares as gift from you.

However, since the shares are entirely funded by you, if your wife subsequently sells the gifted shares (resulting in capital gains or loss) or earns any dividend from the shares, clubbing provisions under the income tax law shall be attracted. Accordingly, any capital gains/ losses arising to your spouse from sale of the gifted shares will be clubbed in your income and taxable in your hands. The tax implications in your hands would continue to depend on factors such as period of holding, whether these are listed or unlisted shares, etc.

TDS or Tax Deducted At Source is when the payer of the income deducts a certain amount of tax from the payment and forwards it to the government on behalf of the payee. Example banks deduct TDS on the interest on FD’s, employers deduct TDS on salaries paid to employees, etc.

TCS or Tax Collected At Source is a system in which the seller of goods or services collects tax from the buyer and remits it to the government on the buyer’s behalf. TCS applies to only a few categories of goods and services like precious metals, minerals and e-commerce transactions.

Income tax is imposed by the Government of India on everyone who earns income in India. It is levied on the basis of the Income Tax Act, 1961. The income tax rates, exemptions and deductions are revised every year as a part of the annual budget.

The new tax regime is the default tax regime

The new and old tax regimes have different tax slabs and rates. The old tax regime has various deductions and exemptions whereas new regime has lower rates of taxes and allows only standard deduction and corporate NPS contribution deduction

Yes, the employee has to communicate to the employer about their tax regime in the beginning of the new financial year.

HRA exemption is not allowed in the new tax regime. It is allowed in the old tax regime.

New tax regime has a standard deduction of Rs. 75,000 and old tax regime has Rs. 50,000

In the old tax regime, the basic exemption for senior citizens is Rs. 3,00,000 and for super senior citizens it is Rs. 5,00,000.

In the new tax regime, no income tax is payable upto a total annual income of Rs. 7,00,000.

A salaried individual can switch between the old and new tax regimes every year. Within the same year, the choice of old tax regime can be made only before filing the tax returns.

A Business professional or self-employed individual can change the tax regimes only once. If he opts for the new tax regime, he can change to the old tax regime only once during their entire lifetime.

Any individual whose income tax exceeds Rs. 2,50,000 in a financial year should file income tax returns.

The tax is applicable to all residents and non-residents who earn income in India in a given financial year. A resident is an individual who stays in India for 182 days or more.

The due date for filing the tax is 31^st July. If it is delayed beyond this date, there0020are fines and penalties imposed by the Income Tax department.

Documents required for filing Income Tax returns include PAN Card, Adhaar card, Bank statements, Form-16 for salaried individuals.

It is also preferable to have home loan statement, interest and dividend income, investment details and house rent details

Financial year is a one-year period used by tax payers for accounting and financial reporting purposes. It begins on April 1^st and ends on March 31^st.

Assessment year is the one-year period immediately following the financial year. The taxpayers evaluate their income earned during the financial year and pay taxes in this year.

The various categories for Income tax deduction include salaries, income from business/profession, interests and dividends, Capital gains, income from house property and other sources.

An individual can save taxes in investing in various schemes such as EPF, PPF and Insurance and claiming deductions under the various sections.

The standard deduction in the old tax regime is Rs. 75,000 and new tax regime is Rs. 50,000.

• Loss under the head capital gains can be only set off within the ‘Capital Gains’ head.
• Short Term Capital Losses are allowed to be set off against both Long Term Gains and Short Term Gains.
• Can be carried forward for 8 Assessment Years immediately following the Assessment Year in which the loss was first computed.

• Yes, Long Term Capital Loss can be set off only against Long Term Capital Gains.
• Can be carried forward for 8 Assessment Years immediately following the Assessment Year in which the loss was first computed.

• Long Term Capital Loss can be set off only against Long Term Capital Gains for both equity and debt mutual funds
• Short Term Capital Losses are allowed to be set off against both Long Term Gains and short term Gains on equity and debt mutual fund.
• Short term for equity mutual funds is 1 year whereas short term for debt mutual funds is 3 years.
• Can be carried forward for 8 Assessment Years immediately following the Assessment Year in which the loss was first computed.

As per section 2(47) of the Income Tax Act, 1961, transfer, in relation to a capital asset, includes the sale, exchange or extinguishment of any rights. In the event the company has gone into liquidation, you have to report the capital loss (if any) in your tax return. Please note that depending on the period of holding, this capital loss could be either long-term or short-term. While short-term capital loss can be set off against any gains (long-term and short-term); long-term capital loss can be adjusted only against long-term capital gain. In case you have any unadjusted loss, then it can be carried forward for set off for the next eight tax years.

Firstly even if one has made losses from F & O trading, they necessarily still need to file Income Tax Returns (ITR).

Income from F & O trading is treated as business income.

In case of losses from F & O trading, ITR needs to be filed before the due date in order to carry forward the losses to the next financial year.

At the time of selling the shares, capital gains are taxed at 20%.

Capital gains which are more than Rs. 1.25 lakhs are taxed at 12.5% if the holding period is more than a year.

The investor has to pay a small tax while purchasing and selling equity shares on the stock exchange called Securities Transaction Tax. An STT of 0.1% is levied and is applicable to shares listed in a Stock Exchange. For equity intraday transactions, an STT of 0.025% is levied while selling the shares.

The dividends are taxed at a marginal rate.

If the equity funds are redeemed within a holding period of one year, we receive short term capital gains or incur short term capital loss.

If the equity funds are sold after holding them for at least a year, we make long term capital gains or incur long term capital loss. Long term capital gains are tax free up to Rs. 1.25 lakhs a year.

Short term capital gain = Sale Price – Expenses on sale – Purchase price

The expenses incurred while selling shares include registration and brokerage charges and various other charges are applicable.

No, indexation is not applicable on Long Term Capital Gains with effect from July, 2024.

Yes, short term capital loss can be offset against short term and long-term capital gains.

Yes, the loss can be carried forward for eight years and adjusted any short term and long-term gains made during these eight years. The investor has to file the income tax within the due date.

Yes, long term capital loss can be set off against long term capital gains. It cannot be set off against short term capital gain.

Long Term Capital Gain = Sales Value – Acquisition Cost

Income arising from the sale of unlisted shares are treated as capital gains, irrespective of the holding period.

If the investor considers his listed shares as stock in trade, it will be treated as business income, irrespective of the holding period

Listed securities are traded on the stock exchange. For listed securities, a holding period of 12 months or less is short term and more than a year is long term.

For unlisted shares, a holding period of 24 months or lower is short term and more than 24 months is long term.

The interests and dividends are added to the income and taxed as per the slab rates.

No, indexation is not applicable on capital gains effective July, 2024

Capital gains are determined for 12 months and 24 months, and there is no 36 month period.

Short term capital gains with a holding period of less than a year is taxed at 20%. Long term capital gains with a holding period of more than 2 years is taxed at 12.5%.

Exemption on capital gains is limited to Rs. 1.25 lakhs. Earlier it was Rs. 1 lakh.

Hybrid funds invest in a mix of equity and debt. Equity includes equity derivatives.

Hybrid funds with 60% or more than 60% investment in equity are taxed similar to equity funds. Capital gains with a holding period of less than a year are short term capital gains and more than a year are long term capital gains. Short term capital gains are taxed at 20% and long-term capital gains above Rs. 1.25 lakhs are taxed at 12.5%.

Hybrid funds with 65% or more than 65% of investment in debt are debt-oriented funds. If investments are made after April 1, 2023, all capital gains, short term and long term, are added to income and taxed as per the tax rate. If investments are made before April 1, 2023, the short term holding period is two years and long term holding is more than two years. Short term capital gains are taxed as per the slab rates. Long term capital gains are taxed at 12.5% without indexation. If the investments were made before April 1, 2023 and sold before 23^rd July, 2024, then 20% rate will apply with indexation benefits, if it is held for 3 years or more.

Hybrid funds with 35% – 65% in equity and the remaining in debt. Short term holding is 2 years and long term is 3 years. Short term capital gains is taxed as per the tax slab rate. Long term capital gains are taxed at 12.5% without indexation.

Debt funds, hybrid funds with more than 65% debt allocation (e.g. conservative hybrid fund, target maturity funds, Short duration debt funds etc, falls under debt taxation category and here are the tax implications for debt mutual funds after the 2024 budget:

Irrespective of Short Term or Long term, the capital gains taxation is taxed as per the tax slab. There is no indexation benefits.

International Mutual funds include foreign equity funds, Fund of Funds.

Holding period for the above funds:

• If redeemed within 24 months / 2 years. It’s treated as STCG and Gains are taxed at 20%.
• If redeemed after 24 months / 2 years. It’s treated as LTCG and Gains are taxed at 12.5%

International funds does not qualify for the LTCG exemption limit of 1.25 Lakhs per year

• If redeemed within 12 months / 1 years. It’s treated as STCG and Gains are taxed at 20%.
• If redeemed after 12 months /1 year. It’s treated as LTCG and Gains are taxed at 12.5%

International funds does not qualify for the LTCG exemption limit of 1.25 Lakhs per year

If maintenance is paid to owner, it will be included in income from house property for the owner. However, if the maintenance is paid directly to the society by the tenant, then it would not be part of income from house property.

• Housing loans are eligible for tax deduction for payment of both interest as well as the principal amount. Land loans do not offer any tax benefit.
•  You can avail tax deductions only if you are constructing a house in the plot. The deduction in that case is applicable only for the loan amount taken against construction, and only after completion of the construction activity,

Any immovable capital asset held for more than 24 months is considered to be a long-term capital asset.

• One can reinvest the capital gains earned under the following sections and avail the capital gains exemption.

–         Section 54 – Purchase of a new house residential house property

–         Section 54EC – Investment in specified bonds issued by NHAI or by Rural Electrification Corporation Limited or any other bond notified by the Central Government in this behalf

–         Section 54GB – Equity shares of an eligible start up

• Two brothers can be co-applicants of a home loan only if they live together in the same property. They must be co-owners in the property for which they are taking a home loan.
• However, a brother and sister cannot be the co-applicants of a home loan.

Similarly, two sisters cannot be co-applicants.

Yes, same rules apply for Sec 24 and Sec 80C as well.

Yes, you can.

Yes, one can claim Sec 24 benefits after getting Occupation certificate even if the house has not yet been registered.

On the home which is let out, you can deduct a notional standard deduction of 30% of annual rental value (rent received minus actual taxes paid). Also you can offset the interest paid on loan taken for acquiring, construction or renovation against the rental income.

For self-occupied property, only a deduction of interest on a loan availed of for acquiring, constructing, repairing, renewal or reconstruction can be claimed, subject to the prescribed limits. However, if you choose new tax regime as per Budget 2020, no deduction towards interest payment on a self-occupied property or loss from a house property can be claimed as deduction from financial year 2020-21.

Yes, you can deduct the brokerage charges while calculating the capital gains but need to provide the proof of payments made to the broker

Rental income earned from jointly owned property is taxable in the hands of each co-owner in proportion of the share in property. This amount would have to be disclosed in each of your income tax returns separately.

No, you can not claim exemption from long term capital gains tax for expenses towards reinvestment in an agricultural land.

You would be considered the owner of the property from the date of receipt or possession of the property. So even if the registration is done later, the income shall be taxable as rental income from the date of possession.

Only specified deductions like municipal taxes, standard deduction of 30% of net rent received and interest on housing loan can be claimed against the rental income received. Deduction for amount paid to the builder is not available as a deduction against the taxable rental income.

As per Income Tax Act of 1961, the buyer of an immovable property is supposed to deduct TDS at the time of making payment to the seller. If the seller is a resident of India, TDS @1% is to be deducted if the sale consideration is Rs 50 lacs or more. If the seller is an NRI, TDS needs to be deducted at the applicable tax rates on the taxable income.

It would be advisable if you obtain a written declaration/affidavit (preferably a chartered accountant’s certificate) from the seller that they would be permanently relocating to India and that they would qualify as resident of India from tax perspective for the financial year in which the sale occured. The onus of verifying all documents and paying tax accordingly lies with the buyer of the property.

Any sum of money received from the relatives as gift or under a will or by inheritance is fully exempt from tax in the hands of the beneficiary.

However the exempt gift amount needs to be disclosed under the schedule “Exempt Income” in the ITR.

You can invest the capital gains amount or Rs 50 lakhs, whichever is lower, in Sec 54EC bonds within 6 months from the date of sale to get exemption from capital gains tax from sale of flat. These bonds have a minimum lock-in period of 5 years and the interest is taxable.

If capital gains are not reinvested, you need to pay tax at 20.8% of the capital gains amount.

You should know the fair market value of your flat as on 1st Apr 2001. This value needs to be multiplied by the CII of the year of sale. This would give the cost price.

Capital Gains = (Selling price) – (Cost price) – (Transfer expenses and any cost of improvement).

Refund of amount paid by you will not have any tax implications. Regarding the interest received, it will be taxable under the head “Income from other sources” in the proportion of contributions made by each owner. Compensation received over and above the booking amount will be taxable based on the terms and conditions mentioned in the document under which the said amount will be received.

Rental income from house property is charged to tax in the hands of the owner. As your son is the owner of the property, he is liable to pay tax on the same even though you receive the rent on his behalf.

One can claim Sec 24 only after possession of the house.

Section 54F of the Act provides for deduction while computing taxable capital gains arising from sale of long-term capital assets other than residential house property. Certain conditions are attached for claiming this deduction. Some of them are:

1. The residential house should be constructed in India either one year before the date of transfer of plot or within three years after the said date.
2. Net sale consideration from sale of long-term capital assets (Plot) is invested in purchase/ construction of a residential house.
3. The new residential house should not be transferred within a period of 3 years from the date of its acquisition / construction.
4. The individual claiming the deduction should not own more than one residential property apart from the new property at the time of selling the plot.

Deduction is not available if the individual purchases a third property within a period of two years after the date of transfer of plot (or) constructed within a period of three years after the date of transfer of plot other that this new property. If the conditions are not fulfilled then, capital gains deduction referred above is taxable in the year in which the conditions are breached.

An individual may not be able to get a tax benefit on sale of plot unless the investment in new asset is also done in his name. In this case, since the 3rd brother does not own the plot on which house is going to be constructed, he’ll not be able to get section 54F deduction. However, he can still explore deduction under section 54EC wherein he can invest up to ₹50 lakh on prescribed bonds within six months from the date of sale.

Section 74 of Income tax Act, 1961 allows setting off of long term capital losses against long term capital gains. Unadjusted loss can be carried forward for setting off. However, roll back of capital loss incurred for example in year 2 against the long term capital gains in year 1 is not permitted. You can adjust in the future and not the past. Therefore, in your case, you would not be able to adjust the gain from sale of your first property (lying in capital gains accounts scheme) against the loss that you may incur on sale of the second flat.

The tax rate of LTCG on the sale of house property without indexation is 12.5% and with indexation is 20%. Tax rate on STCG are as per the income tax slab rates applicable to the individual.

If NRIs hold property in India for more than two years, the tax rate on the LTCG is 20% without the benefit of indexation

• Section 80D of the Income Tax Act allows deduction for medical expenditure incurred on senior citizens. This deduction can be claimed by the senior citizen himself/herself or by his/her children, if the latter are incurring medical expenditure for their senior citizen parents.
• If individual and parent both are above 60 years, maximum deduction is Rs 1 lakh.

Yes, you can.

One can claim under Sec 80DDB up to a maximum of Rs 40,000/-. But remember the amount claim will be reduced by the amount received from an insurer or reimbursed by employer for medical treatment of such person.

As per Section 80D of the Income Tax Act, any amount paid towards medical expenditure on the health of a senior citizen (aged 60 years or above) is allowable as a deduction, up to a maximum of ₹50,000. But no amount should have been paid to keep in force any health insurance for the said senior citizen.

Further, such payment should have been paid by any mode other than cash.

Medical expenses incurred for doctor’s consultation fees, medicines, diagnostic tests, etc, qualify for claiming the deduction benefit under Section 80D.

It is recommended to maintain the supporting documents for a period of two years. Maximum time period for retention of documents can be regarded as seven years.

Yes.

• Yes, A parent can claim a deduction on the amount paid as tuition fees to a university, college, school or any other educational institution.
• The maximum deduction on payments made towards tuition fee can be claimed for up to Rs 1.5 lakh together with the deduction with respect to insurance, provident fund, pension etc. in a financial year.
• The deduction is available to a maximum of 2 children for each individual. Therefore, a maximum of 4 children’s deduction can be claimed, i.e. 2 by each parent.

No, only interest from savings account is included in Sec TTA.

Any sum paid by an individual in the financial year towards insurance on the life of any child of the individual is eligible for claiming deduction. Hence you are eligible to claim deduction under Sec 80C for the life insurance premium paid by you for your daughter.

Section 80C deduction can be claimed by Individuals and HUFs.

Maximum deduction allowed under Section 80C is Rs. 1,50,000 from the gross total income every year.

Section 80C deductions list includes ELSS funds, NPS Scheme, ULIP, Tax saving FD, PPF, Senior citizen Savings Scheme, National Savings Certificate, Sukanya Samriddhi Yojana, etc.

An individual can claim deduction under Section 80CCC for investment made in a life insurance plan for a pension fund from an insurer as per Section 10(23AAB). The insurance company, whether public or private, should be approved by the Insurance Regulatory and Development Authority of India (IRDAI).

Section 80CCD(1) provide deduction for employee’s contribution to National Pension Scheme upto Rs. 1.5 lakhs and Section 80CCD(2) provide deduction for the employer’s contribution to NPS upto 10% of salary. Section 80CCD(1B) allows additional contribution to NPS of Rs. 50,000.

Section 80TTA allows tax exemption on interest from Savings Accounts upto Rs. 10,000.

A resident senior citizen aged 60 years and above can claim deduction under Section 80TTB on interest from deposits from banks, post offices, etc upto Rs. 50,000.

Salaried individuals and self employed professionals are eligible for deductions under Section 80GG for rent paid for rented house. The employer should not provide HRA as a part of monthly compensation.

If the annual rent exceeds Rs. 1 lakh, the taxpayer is required to submit the landlord’s PAN card. Individuals claiming for HRA cannot claim deduction under Section 80GG. Individuals residing with parents in a property owned by their parents can also claim the benefit. He would need to sign a rent agreement with his parents. The rent amount will be taxable when their parent files the annual tax returns.

Property owners can claim Section 80GG if they fulfil the below criteria:

1. They should pay rent for a property where they currently reside

The properties they own should not be in the same location as their workplace. If they own a property within the city but live in a rented house, Section 80GG will not be applicable.

Yes, NRIs can avail the benefits. They should be paying rent for a property in India.

Yes, an individual can claim Section 80GG deduction for rent paid to parents. Individual’s parents should include the rental payment in their annual income.

An individual can claim deduction under Section 80E for interest paid on education loan taken for pursuing higher studies. The loan can be taken by the taxpayer, his spouse and children or for a student for whom the tax payer is a legal guardian.

Deduction can be claimed upto eight years starting from the year the interest is accumulated or till the entire interest is paid, whichever is earlier. There is no limit on the amount of interest that can be claimed.

Joint owners of a self occupied property can claim the benefit on the interest payment upto Rs. 2 lakhs each and Rs. 1.5 lakhs each on the principal amount including registration charges, stamp duty, etc.

To avail the benefits, the individual has to be co owner as well as a co borrower for the loan.

Rs. 2,00,000 can be set off against loss from house property – self occupied or rented.

An individual can claim interest on home loan under Section 24 if the loan is taken from friends or relatives. However, he cannot claim deduction for principal under Section 80C.

Pre construction interest can be claimed on the interest paid from the date of borrowing to the date of completion of construction. The amount can be claimed in five equal installments beginning from the year of completion of construction besides the regular interest claim.

This is not allowed for loan taken for repair or reconstruction of property.

An individual assessee can claim deductions under Section 80E and Section 80EEA.

Section 24 provides deduction of tax on home loan interest, Section 80C provides deduction of tax on home loan principal and Sections 80EEA and Section 80EE provides deduction of tax for first time home owners.

The documents for interest deduction includes loan certificate from the lending institution, loan sanction letter, lease deed and possession certificate and declaration for ownership and self occupancy.

House property owners can claim a deduction of upto Rs. 2,00,000 for self occupied or vacant property for purchase/construction of the property. If the house is rented out, the entire interest amount can be claimed as a deduction.

The deduction amount is limited to Rs. 30,000 if the home loan is for any purpose other than purchase or construction of the property, loan is taken before 1^st April, 1999 and the purchase/construction is not completed within 5 years from the end of the financial year in which loan was taken.

The deductions include municipal taxes, standard deduction of 30% on the gross annual value if the property is let out, deduction on interest paid on home loan and deductions under Section 80C, Section 80EE, Section 80EEA.

Principal repayment amount of upto Rs. 1.5 lakhs can be claimed under Section 80C. For interest on home loan, deduction upto Rs. 2 lakhs can be claimed under Section 24(b). If the limit is exhausted, a further deduction of Rs. 1.5 lakhs can be claimed under Section 80EEA, provided all the conditions are satisfied.

Section 80EE and Section 80EEA deductions are not available under the new tax regime. If the house is rented out, the entire loan interest can be claimed against the rental income under Section 24.

A deduction of Rs. 75,000 is available to a resident individual who suffers from physical disability, including blindness or mental retardation. In case of severe disability, more than 80%, the deduction limit is Rs. 1,25,000. A medical certificate from the medical authority is required to claim the deduction and the individual should be under the old tax regime.

If an individual is claiming deduction under Section 80DD, then he is not allowed to claim the deduction under Section 80U.

No, proof of expenses is not required. A medical certificate is required to gauge the disability percentage.

Yes, Form 10IA is required to claim the deduction. The form can be issued by a certified neurologist, civil surgeon, or chief medical officer in a government hospital.

Section 80G provides income tax benefits if donations are made for social cause.

Section 80GGB provides tax benefit to an Indian company if it provides contribution to any political party or an electoral trust. Donation should be made through any mode other than cash.

Section 80GGC provides deduction made by a person to a political party or an electoral trust. Donation should be made through any mode other than cash.

An individual taxpayer can claim the deduction and it is not available to companies, local authorities and an artificial judicial person wholly or partly funded by the government.

Section 80RRB provides deduction for income for royalty of a patent, registered on or after 1^st April, 2023 under the Patents Act, 1970. The deduction limit is Rs. 3 lakhs or the income received, whichever is less. The taxpayer must be an individual patentee and an Indian resident and should provide a certificate in the prescribed form duly signed by the prescribed authority.

Indian authors who are income from royalty or copyrights can claim deduction under Section 80QQB upto Rs. 3 lakhs or the income received, whichever is less. Royalties earned from journals, diaries, guides, newspapers, pamphlets, textbooks, or similar publications are not eligible for deduction. Any royalty income received from abroad should be repatriated and brought into the country within a particular time period to be eligible for the deduction.

Yes, income from royalty is taxable.

Yes, joint authors can claim the deduction, if he receives royalty income from a book which is jointly authored. Both authors can claim the deduction separately, subject to a maximum limit of Rs. 3 lakhs each.

The investments proofs should be submitted to the employer by the end of the financial year. This will help the employer to calculate the taxable income and tax deductions. If it is not submitted, the deductions can still be claimed while filing tax returns provided the investments are made before the end of the financial year.

No, Section 80E requires the loan to be taken from a bank or financial institution. It cannot be claimed, if the loan is taken from the employer.

HRA is provided by an employer to an employee to cover the cost of living in a rented accomodation. If an individual lives in his or her own house and does not pay rent, the HRA is entirely taxable and HRA exemption is not allowed.

HRA benefits can be claimed by a salaried individual who have an HRA component in their salary structure and live in a rented house. The benefit is not available to self employed workers.

To claim HRA exemption, an individual should live in a rented accomodation, receive HRA as a part of the salary structure, provide correct rent receipts and proof of rent payments.

HRA depends on various factors like salary, HRA amount received by the employee, rent paid, city of residence, etc.

The documents include rent receipts mentioning the date and name of the landlord, landlord’s PAN card details, tenant’s name, address of the rented house, duration of stay, revenue stamp, signature of the landlord on the revenue stamp, rent agreement, etc.

The maximum HRA limit is equal to the HRA component of the individual’s salary structure.

No.

Yes.

You need to only show EPF contribution based on Form 16 issued by employer.

No, the Section 10(13) grants exemption from tax in case payment is received from an approved superannuation fund by an employee in lieu of or in commutation of annuity on his retirement. However, annuity received from superannuation fund of LIC is taxable under the head “Salary”.

Employee contributions of up to 12% of basic to EPF qualifies for tax deduction under Sec 80C. However, from April 2021, if employee contribution towards EPF and VPF exceeds Rs 2.5 lakhs in a financial year, then the interest earned on contributions above Rs 2.5 lakhs will be taxable. For employees whose employer is contributing to NPS account, income tax deduction of 10% of salary (basic + DA) is available under Sec 80CCD (2) even in new tax regime.

Yes, as it is considered at unlisted shares held.

Tax for RSU is considered in the year that it gets vested and then sold.

Yes.

No, you can claim deduction on rent only for the property that you are residing in.

No, maintenance paid to society can not claimed as part of rent paid. Only the amount paid to the owner as rent qualifies to be claimed as rent.

No, you can claim HRA only for the rent on the house that you live in.

Exemption of HRA is not available if employee resides in his own house or does not incur any expenditure on payment of rent. Hence payment of rent to close relatives will not be considered legitimate unless there is substansive documentary evidence to prove it.

As long as the rent agreement is in your name and the total amount paid (whether in cash or cheque) is mentioned, you can claim it in HRA.

Tenants paying rent to NRI landlord need to keep the following things in mind:

1. Ensure the landlord has appointed a representative in India who can act on his behalf in case of any maintenance or legal issues.
2. Have a clear and detailed rental agreement in place which includes information on rent payments, security deposit and any other fees or charges that may be applicable
3. Obtain a TAN number (One can apply for a TAN number on the NSDL website). TAN number is a tax deduction and collection account number that is required for deducting TDS on rent payments.
4. When a tenant pays rent to an NRI landlord they are supposed to deduct TDS at the rate of 31.2%. TDS can be deducted by filling Form 16A with the Income Tax Department.
5. Rental proceeds must be paid to the NRI landlord’s NRO account
6. Within 15 days of the end of each quarter, tenant must issue a TDS certificate to the NRI landlord in Form 16A.

https://www.financialexpress.com/money/tenancy-rules-nri-landlord-obtain-tan-number-to-deduct-tds-of-31-2-on-rent-proceeds-3214090/

NRI’s can’t own agricultural land in India but may acquire it through inheritance from a resident of India. The NRI can sell the land only to a person who is a resident of India. As per exchange control rules, a maximum remittance of $1 million per financial year is only permitted from sale of an agricultural land from NRO account.

No income tax is levied upon inheritance and sale of agricultural land in India unless the agricultural land is situated in or within the periphery of certain specified urban areas such as urban agricultural land.

No, the NRI need not file Income Tax returns if he does not have taxable income to the amount not chargeable in India (less than Rs 2.5 lakhs) and if he/she is not covered under specified conditions which are:

1. a) Has deposited an amount of Rs 1 crore or above in one or more current accounts maintained with a banking company or a co-operative bank.
2. b) Has incurred an expenditure of an amount exceeding Rs 2 lakhs for himself or any other person for travel to a foreign country.

c) Has incurred an expenditure of an amount exceeding Rs 1 lakh towards the consumption of electricity.

Based on the limited information provided by you, its is presutiled that your an Indian citizen and qualify as Resident and ordinarly resident and ordinarly resident and this you are requried to disclose the details in ITR-2 of all your foreign.

foreign asset (FA) schedule in the ITR from seeks to incorporate the details of assets which a taxpayer holds outside India. In the absence of any specific guidelines qua asset, Whether an asset is to be included or not will need to be evaluated basic the enatre and vesting of the asset, wordings and description in the schedule and the limited instructions guidelines in this regards.

It is assumed that the 401(k) account is a personal pension account in the US in which both the employer and employee contribute during the period to disclose the detail of the 401(k) account inn the FA schedule.

with respect t the specific section of the FA schedule under which its should be disclosed, it would depend upon the exact nature of the 401(k) account, which will need to be evaluated. In case of the nature of account does not fall into any specific category, one may consider reporting it under  the residual section D- any other capital asset as per the ITR-2 from applicable.

Different types of tax notices that taxpayers might receive:

1. Intimation under Sec 143 (1): Due to discrepancy due to any of the following reasons:
2. any arithmetical error in the return
3. any incorrect claim of deduction, exemption, allowance, etc claimed
4. disallowance of loss or certain specified deductions claimed in case of belated return
5. Additional income appearing in Form 26AS or Form 16A/Form 16 which has not been included while computing the total income in the tax return.
6. Notice under Sec 143 (2):if the assessing officer (AO) considers it necessary to ensure that the assessee/ taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner.
7. Notice for demand under Sec 156: In case of demand for any tax, interest, penalty, fine, or any other sum payable by the individual
8. Notice for set-off of refund under Sec 245: If the refund is due to the taxpayer under the provisions of the IT Act and such taxpayer also has outstanding tax liability with respect to previous financial years, a notice under Section 245 of the IT Act may be issued to the individual taxpayer and his/her unpaid taxes shall be adjusted against the refund receivable
9. Notice for defective return under Sec 139 (9): A return may be treated as defective on account of incomplete or inconsistent information in the return or for any other reason
10. Notice under Sec 142 (1): when an individual or entity has already filed their income tax return and further details and information is required to be submitted.
11. Notice under Sec 148: when the income tax department reopens past assessed returns due to suspected underreported income.

If one has received an income tax notice, one needs to respond to the same either by rectifying or clarifying the discrepancies.

• First review the notice and understand its contents
• Determine the cause of the notice, such as discrepancies in tax return
• Login to the e-filing website and navigate to e-proceedings section
• Respond within the specified timeframes to avoid penalties
• If there are genuine minute errors, admit it and file a revised return
• For minor discrepancies, provide a detailed explanation with relevant supporting documents
• For more complex issues or large tax demands, consult a tax professional (Chartered Accountant)