'My Salary Is Rs 17L. Which Tax Regime Is Better?'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU T S Khurana, a fellow member of The Institute of Cost Accountants of India, will answer them.

Anonymous: Hi, I am working professional in an NGO. My salary is Rs 40,000 per month. I have investments in MF and stocks of up to Rs 25 lakh. I have not yet filled ITR till now. How much tax would be applicable to me in this scenario?

Your information for tax calculation is not complete. However, I can tell you broadly that based on your salary income of Rs 4.80 lakhs per annum, no tax would be payable.

As for as your stocks and MF investments are concerned, unless you sell some stocks or MFs, these are not taxable as there is no income in your hands.

You should file your ITR on a regular basis to avoid any complications later on.

Thasari: My wife was given a flat in first floor 770 sq ft and UDS of 495 sq ft through a settlement deed.
The ground floor was given to my wife's sister.
My father-in-law built that house in the year 1975 and the deed of settlement was executed in the year 2010.
Now, my wife is transferring her portion to her sister for Rs 75 Lakh.
How to avoid or reduce LTCG? How much that would be in case of sale?
Regards, Palanichamy

On the basis of this limited information, we can only suggest following:

1. In this case, LTCG will depend upon the cost of the flat being sold. Since it is parental property built in 1975, you should get a valuation certificate from an architect declaring its value as on 01.04.2001. This shall be taken as cost as on 01.04.2001, for working out the LTCG.

2. Tax liability can be worked out with indexation (20 per cent) or without indexation (12.50 per cent). You may choose the option where tax liability is minimum.

3. You can plan your LTCG tax by investing the amount in capital gain bonds or purchase a new residential property within specified time limit. 

Anonymous: Hi I am selling a house with a capital gain of Rs 50 lakh. Can I use this money to settle home loan of another house in my name partially and claim exemption in paying capital gain tax? Both the houses are jointly in the name of my wife and I. Capital gain I have calculated as Rs 50 lakh.

You are entitled for exemption only if you purchase a new house within one year before or two years after selling the property.

In case of construction, time limit is one year before or three years after selling the property.

Hope this makes your point clear.

Imran: My new CTC from 1st April 2025 is Rs 17LPA.
I can claim full tax rebate under 80C, 80DD (Rs 1,25,000) and another Rs 70,000 approx under interest on home loan.
Which tax regime should I select for next year?

Calculate tax liability in both regimes and select the one which is more beneficial to you. However, broadly speaking, the new tax regime may be more suitable in your case.

Anonymous: I transferred some amount to HUF account. As there is clubbing provision, can I take that amount back?

There is no problem if you have transferred some amount to your HUF account. Any income generated by HUF shall be taxable in the hands of the HUF only.

However, you have the option to take back the amount if you feel. In this case, it shall be treated as loan given and taken back from HUF.

• You can ask rediffGURU T S Khurana your questions HERE.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.