'Your Tax Liability Will Be 0, But...'

Do you have income tax-related queries?
Please ask your questions HERE and rediffGURU Mihir Tanna, associate director, S K Patodia and Associates, will answer them.

Nithesh: Sir I have a question. I am 20 year old and I am a trader and I made 10 lakhs from trading and I have a doubt about tax on the profit that i earned how much should I pay tax is this profit comes under the 12.75 lakhs employee salary or there is an another section for trading and it is only 3 lakhs for non-taxable income above that we should file itr. Now what is the solution for this which section is applicable for me?

There are 5 heads of income under Income Tax Act and your trading income is appears to be taxable as Income from Capital Gain. It is taxable at different rate depending on holding period of shares on which STT is paid at the time of acquisition and sale as well as on date of sale.

In FY 2024-25, if shares are sold before July 23, Short term capital gain is taxable at 15% and Long term capital gain is taxable at 12.5% (above gain of 1 lakh). If shares are sold after July 22, Short term capital gain is taxable at 20% and Long term capital gain is taxable at 12.5% (above gain of 1.25 lakhs).

Prasanna: Sir, i had purchased a flat in Nov 2013 for 30 lakhs (inclusive of registration and interior) and same was sold on 31st May 2025 at Rs 45.5 lakhs.
Further I, jointly with my son (i am co-applicant), purchased a flat on 18.4.2024 at Rs 1.3 cr by availing SBI housing loan of Rs 80 lakhs.
Whatever the amount i received after selling my property (2013 purchased property), i have transferred the entire amount to SBI for partial clearing of loan.
My question sir is: what will be my gain implication?

You must be aware that in case of transfer of long term capital asset (being flat), gain amount will be exempt if gain amount is invested in another property as per prescribed conditions.

In given case, as part of the amount (1.3 cr minus 80 lakhs = 50 lakhs) is contributed by you and your son. Thus, gain amount will be exempt to the extent amount contributed by you in 50 lakhs.

Chandran: Sir, My NRI daughter has to file ITR in Form 2 for FY24-25. All relevant data is visible in AIS. As there is some hurry, can she go ahead and file the ITR or does she need to wait for anything else? There was news that forms 1 & 5 were ready which indirectly meant that other forms were not yet ready. Hence this query, sir.

AIS is updated based on SFT/TDS/other returns filed by different reporting entities Due date of some of such returns was May 31 and accordingly, AIS is likely to be updated in next 2 week. Thus, it is advisable to file ITR after June 15.

Further, AIS can be base for ITR but if any income/TDS/other details are available with you but not appearing in AIS; same is required to be reported/considered in ITR as per Income Tax provisions.

Anonymous: Dear Sir, my Q is If there's no/ zero tax below 12 income then why 5% & 10% applied / proposed for 4-8 lakhs & 8-12 lakhs, slabs, respectively.
Sir, how many types of incomes exist for tax purpose other than Salary income?
Can you please list all or give me a weblink to know all types of taxed incomes & non taxed incomes sources?

Tax is calculated as per slab rate prescribed under both regimes and once tax calculation is done there is a concept of rebate which is deducted from tax liability.

Accordingly, if taxpayers opt for a new tax regime, tax on 12 lakhs of income will be 60,000 and rebate will be 60,000. Thus, tax liability will be zero.

Please note that rebate is not available on special rate income like short term capital gain on equity shares which is taxable at 20%, long term capital gain on equity shares is taxable at 12.5%.

You can calculate tax liability, using advance income tax calculator available at following link here (external link).

You can read more about new and old tax regime at following link here (pdf file, external link).

Manikandan: The property is a flat and was registered on Aug 24, 2023. The certificate of completion was issued by authorities in September 2024 only as these are high rise towers. If we need to sell the property today, what will be the date of acquisition from Capital gains perspective? Will it be a LTCG or STCG?

In case you have acquired property from builder, date of allotment (usually on 1st installment payment) is date of acquisition and holding period start from said date. Accordingly, if it is transferred after 24 months of allotment letter it is long term capital gain.

Anonymous: Hello sir, recently we sell the property and right now 40 lakhs cash in hand. I am planning to put it in FD for monthly income. Right now I don't have any loans or any liabilities. In fact nearly 50k I am investing monthly in mutual funds. Already 10 lakhs FD in wife savings account and more than 20 lakhs KVP in post office on my children name.
I am actually planning for passive income apart from my salary. With this income I am planning to roam around India twice a year with family. Without tax deduction or TDS how to segregate this 40 lakh for passive income.
Getting a monthly salary of more than a lakh. But I don't want to use my salary money for any enjoyment; it is for only MF investments, domestic expenses and future savings. Kindly guide me please.

Your query is subject to many factors like your risk appetite, how you are planning your trips etc. Usually for such kind of goals (wherein fund is required after 6-8 months), people invest in liquid mutual fund. On redemption TDS will not be deducted but tax will be applicable.

• You can ask rediffGURU Mihir Tanna 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.