By Chirag Nangia
I am working in an IT business. My salary is Rs 6 lakh per annum and by error I opted for the new tax regime and tax was deducted. If I had opted for the old tax regime there wouldn’t have been any tax to spend. How can I alter to the old regime?
—Satish Kumar Reddy
Under the new concessional tax price regime, people can offer you their total earnings at decrease slab price prescribed, offered they forgo particular specified deductions and exemptions. This regime is optional and the selection can be exercised in each tax year if the taxpayer does not have small business or expert earnings. In the absence of details, it is assumed that you are a salaried employee, not possessing any earnings from small business or profession.
It has been clarified by the CBDT that intimation to employer declaring intention to opt for concessional tax regime shall only be for the objective of TDS, which can’t be modified in the course of the year. However, at the time of filing return of earnings, one could switch to the old regime. Thus, selection at the time of filing of return could be diverse from intimation made by the employee to the employer. The ITR Form asks the option of the person and tax is computed accordingly. The TDS in excess of the final tax liability (ascertained right after taking into account the allowable deductions/ exemptions), could therefore be claimed as refund by opting for the old regime in the ITR.
If my earnings from the sale of stocks exceed the simple exemption limit of Rs 2.5 lakh (a) will I have to spend each capital gains tax and earnings tax? (b) How do I in fact spend the tax?
—Manipal Mithun
Tax on capital gains is aspect of earnings tax. Any lengthy-term capital gains (LTCG) on transfer of listed shares are taxed at 10%, if such gains are in excess of Rs 1 lakh in a economic year and Securities Transaction Tax (STT) has been duly paid. Other LTCG are taxed at 20%.
Short term capital gains (STCG) are taxable at appli-cable slab prices. The price is 15% if STCG arise on sale of listed equity on which STT has been paid. A resident person could adjust the simple exemption limit against LTCG/ STCG, right after creating adjustments of other earnings. In order to discharge your tax liability, you will have to file Income Tax Return type. You can spend the tax by creating payment via an authorised bank or via the world-wide-web by availing e-tax payment facility.
The writer is director, Nangia Andersen India. Send your queries to