https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398109
Standard deduction of 50K availed ?
ITR 2 Filing TAX Issue
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I have my salary income 4.8 Lakhs after claiming all deductions. So as per rule, I don't have to pay any tax.
Again, I have long term capital gain income of 70 thousand. So as per rule I don't have to pay any tax as upto 1 lakh capital gain is tax free.
But during ITR 2 filling, the system is adding both of these 2 income and showing total income as 5.5 lakhs.
And system is showing approximately 13 thousand tax on my salary income and zero tax on capital gain income.
I am qualifying both the criteria but still tax is showing there.
So please suggest me how to avoid this tax. Thanks for all of your help.
Again, I have long term capital gain income of 70 thousand. So as per rule I don't have to pay any tax as upto 1 lakh capital gain is tax free.
But during ITR 2 filling, the system is adding both of these 2 income and showing total income as 5.5 lakhs.
And system is showing approximately 13 thousand tax on my salary income and zero tax on capital gain income.
I am qualifying both the criteria but still tax is showing there.
So please suggest me how to avoid this tax. Thanks for all of your help.
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https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398117
LTCG of 70k is tax free true but its still comes under aggregate income and as ur aggregate income is above 5L rebate is not applicable for u
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398123
Jarvis.-. wrote:Yes, but government need to provide rebate against this. Should I raise grievance against this through Income Tax Portal?LTCG of 70k is tax free true but its still comes under aggregate income and as ur aggregate income is above 5L rebate is not applicable for u
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398147
Jarvis.-. wrote:LTCG of 70k is tax free true but its still comes under aggregate income and as ur aggregate income is above 5L rebate is not applicable for u
That's wrong. Salary income has nothing to do with equity capital market gains.
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398178
Are you using incometax website for filling? Have you filled 112A?
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398298
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Ramta_Jogi wrote:That's wrong. Salary income has nothing to do with equity capital market gains.
Wrong capital gain first added to other income i.e. here salary then exempted upto 1L see ITR calculations sometimes
"To calculate the rebate, first add up income from all your sources, like salary, house rent, capital gains , income from other sources etc,. This is your gross income. Now from your gross income, apply the deductions u/s 80 of the Income tax Act, 1961, as applicable. The amount after claiming all the deductions becomes your net taxable income. If your net taxable income is less than or equal to Rs 5 lakh, (applicable from A.Y 20-21), you are eligible to claim rebate under Section 87A. However, if it exceeds Rs 5 lakh, you pay tax as per the slab rate you fall in during that particular year."
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398645
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Jarvis.-. wrote:Wrong capital gain first added to other income i.e. here salary then exempted upto 1L see ITR calculations sometimes
"To calculate the rebate, first add up income from all your sources, like salary, house rent, capital gains , income from other sources etc,. This is your gross income. Now from your gross income, apply the deductions u/s 80 of the Income tax Act, 1961, as applicable. The amount after claiming all the deductions becomes your net taxable income. If your net taxable income is less than or equal to Rs 5 lakh, (applicable from A.Y 20-21), you are eligible to claim rebate under Section 87A. However, if it exceeds Rs 5 lakh, you pay tax as per the slab rate you fall in during that particular year."
Can't be. Else I'd be getting IT notices/ outstanding demands for Capital gains of 2- 10L - 40L and non payment of tds on salary of 5.3L coz. Post 87A rebate it's non taxable. The tds part can't be ascertained at the end of year.
Capital gains are added to income only in case of debt funds, which are then taxed at your existing income tax slab; not in case of equity capital gains. @followsatyajit
Is your capital gain equity related or debt related?
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398681
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Ramta_Jogi wrote:Equity capital gains -- flat 10% right irrespective of income slab ?Can't be. Else I'd be getting IT notices/ outstanding demands for Capital gains of 2- 10L - 40L and non payment of tds on salary of 5.3L coz. Post 87A rebate it's non taxable. The tds part can't be ascertained at the end of year.
Capital gains are added to income only in case of debt funds, which are then taxed at your existing income tax slab; not in case of equity capital gains. @followsatyajit
Is your capital gain equity related or debt related?
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398753
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398787
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Ramta_Jogi wrote:Can't be. Else I'd be getting IT notices/ outstanding demands for Capital gains of 2- 10L - 40L and non payment of tds on salary of 5.3L coz. Post 87A rebate it's non taxable. The tds part can't be ascertained at the end of year.
Capital gains are added to income only in case of debt funds, which are then taxed at your existing income tax slab; not in case of equity capital gains. @followsatyajit
Is your capital gain equity related or debt related?
i said what written in law many don't follow it and it dept dont care about them its normal...here u can see even official income tax calculator saying the same, feel free to report to it dept that their own calculator is wrong
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9398808
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Jarvis.-. wrote:i said what written in law many don't follow it and it dept dont care about them its normal...here u can see even official income tax calculator saying the same, feel free to report to it dept that their own calculator is wrong
I actually don't use IT department's return filing calculator. Have hired services of a CA firm.
Just my views as per filing of CA over the years -
Sure, the net taxable income is all inclusive but how tax is calculated on that is as per the tax on different sources of income.
In my case for e.g - I got salary, equity gains, income from business, agricultural income, equity dividend income, savings interest income,p exempted interest income etc (even agricultural income is added to the "income from all sources"). However, tax on all these are calculated independently under different heads and then the net tax payable is arrived at.
For salary alone however, capital gains are not added to it till the time the OP is talking of debt income (income from sale of debt mutual funds with or without indexation benefit, long or short term)
Calling OP, anybody home?
@third.i.financial.advisors - Your views?
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9399175
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OP feels that no tax is payable but the ITD doesnt think so. No deduction for LTCG upto 1 lakh is provided while calculating GTI. It needs to be added to GTI for calculation of tax purpose.
Further, LTCG deduction comes u/s 112A, if the deduction was provided u/s 10 , then OP would be right. But thats not the case here.
SECTION 112A , clearly states rebate u/s 87A is not applicable to section 112A gains.
Ramta_Jogi wrote:I actually don't use IT department's return filing calculator. Have hired services of a CA firm.
Just my views as per filing of CA over the years -
Sure, the net taxable income is all inclusive but how tax is calculated on that is as per the tax on different sources of income.
In my case for e.g - I got salary, equity gains, income from business, agricultural income, equity dividend income, savings interest income,p exempted interest income etc (even agricultural income is added to the "income from all sources"). However, tax on all these are calculated independently under different heads and then the net tax payable is arrived at.
For salary alone however, capital gains are not added to it till the time the OP is talking of debt income (income from sale of debt mutual funds with or without indexation benefit, long or short term)
Calling OP, anybody home?
@third.i.financial.advisors - Your views?
OP feels that no tax is payable but the ITD doesnt think so. No deduction for LTCG upto 1 lakh is provided while calculating GTI. It needs to be added to GTI for calculation of tax purpose.
Further, LTCG deduction comes u/s 112A, if the deduction was provided u/s 10 , then OP would be right. But thats not the case here.
SECTION 112A , clearly states rebate u/s 87A is not applicable to section 112A gains.
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9399607
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Jarvis.-. wrote:i said what written in law many don't follow it and it dept dont care about them its normal...here u can see even official income tax calculator saying the same, feel free to report to it dept that their own calculator is wrong
Ok..I am raising this issue to Income tax portal and will update you all about the update
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9404758
Tax is correctly levied, ltcg 1lac limit is not a deduction but a limit, so it will be included in gti and tax will be calculated on salary component. To save tax you can pm
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9405048
chiragpratapsingh990 wrote:mean if ltcg is till 1 lakh 0 tax if more than 1 lakh tax on full ltcg?
Tax is correctly levied, ltcg 1lac limit is not a deduction but a limit, so it will be included in gti and tax will be calculated on salary component. To save tax you can pm
https://www.desidime.com/discussions/itr-2-filing-tax-issue?page=1#post_9449713
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LTCG above 1lac is taxable at 10%
noobDealer wrote:No.
mean if ltcg is till 1 lakh 0 tax if more than 1 lakh tax on full ltcg?
LTCG above 1lac is taxable at 10%
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