My total income from pension and investments is Rs 13 lakh. Which ITR form should I use for filing ITR?
Your pension income will need to be declared under salary head and offered to tax at your applicable slab rate after standard deduction of Rs 50,000. LTCG on FMP maturity will be taxed at 20% after indexation.
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Can I claim deduction on principal of home loan EMI paid if I have not received possession of property?
The principal portion of the EMI paid for the year is allowed as a deduction under Section 80C in the year of payment. Do remember that the property should not be sold within five years of possession.
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I bought a flat in February and want to sell it in October 2020. What will be the tax implication?
If you are selling the flat in less than 24 months of purchasing it, the gains will be short term capital gains. These will be taxed at your applicable slab rate and there will be no indexation benefit.
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I am a senior citizen and I did not incur capital gains in FY 2019-20. Can I file ITR-1?
As per the ITR forms notified by the government, an individual is eligible to file a tax return using ITR-1 if the total taxable income from the specified sources does not exceed Rs 50 lakh in the financial year 2019-20.
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What other deductions can I claim from my salary part from common ones like 80C, 80D?
The current income tax laws allow various other deductions from the income chargeable to tax apart from common ones such as section 80C, 80D, section 24 etc.
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Can I file ITR-1 for AY 2020-21 if I have made tax-free long term capital gains?
Form ITR-1 is for ordinary residents having total income up to Rs 50 lakh from salaries, a single house property and any other sources (interest etc.), and agricultural income up to Rs 5,000.
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Can I get rebate of Rs 12,500 against tax paid on long-term capital gains on equity?
An individual cannot claim rebate under section 87-A of the Income-tax Act on the tax payable on the long-term capital gains on the sale of the listed securities.
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Can I claim HRA tax exemption for rent paid to spouse while filing ITR?
You can certainly claim the rent paid to your wife as an expense for the part of the premises used for your business or profession but generally, it is more onerous to prove a commercial relationship between husband and wife.
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After leaving job, how long will my EPF account earn interest? Will interest stay tax-free?
Despite the tax on the interest, EPF continues to have the highest returns among small saving schemes. So it makes sense to make small periodic withdrawals to ensure that the account does not become inoperative.
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Employee’s contribution to PF will be reduced to 10%. Will it increase the tax burden?
The reduction in contribution will lead to an increase in your takehome pay which, in turn, will be taxed at your income-tax slab rate. This reduction has to be undertaken by all companies falling within the ambit of EPF.
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How can I set off losses from share trading against income tax liability in current FY?
Short term capital losses are allowed to be set off against both long and short term gains. However, if you are not able to set off your entire capital loss in the same year, both short and long term loss can be carried forward for 8 assessment years.
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