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Claimed only 40% in 44ADA, should I revise to claim 50%? I don't want to get into scrutiny

Founder

Claimed only 40% in 44ADA, should I revise to claim 50%? I don't want to get into scrutiny- Grapevine

CA here. In case anybody has any query regarding Income-tax return filing, can comment below. Will try to help you out as much as possible.

Income- tax Return

44ADA

Software Engineer

I am of the understanding that capital gains under 1L are tax free and those gains aren’t to be added to your taxable income. However, I met a friend this evening who informed me that her CA says that capital gains are always added to the taxable income and are not really tax free regardless of them being under 1L. If this is true, my friend is not getting the 6K rebate she was hoping to get since her taxable income now crosses the 5L barrier. Had the capital gains not been added to her taxable income, she would well under this 5L barrier. 

Can anybody please confirm if this is indeed true?

Some additional context: The capital gains are from her ELSS investments which were sold in the last FY and amounted to about 50k over the sale of about 1.7L

If this is indeed true, I have a follow up question from an inversion POV - if capital gains indeed exceed 1L, will one then be taxed twice? i.e. The 10% LTCG tax as well as the slab based tax on taxable income (salary - dedications + capital gains)

Capital gains related tax query

Product Manager

Heard on app people getting notices
Any info on this? Is it also for <1 lakh claims

Notice on HRA claims?

Analyst

Warning: This is a lengthy post. 

Filed some salaried ITRs during this tax period. Following are some of the common mistakes which can be avoided

1. If you have changed jobs ensure that income from previous job is disclosed to the current employer and TDS gets deducted correctly. One basic check you can do is the TDS deductions made by new employer should not be lesser than monthly deductions done by your previous employer unless you have lower CTC compared to your previous job or have additional deductions.

2. During Feb/March take your bank statement, trading account statement and declare the income from capital gains, dividends and interest to your employer, so TDS can be deducted accordingly. Helps in avoiding surprise cash outflow in July and saves from paying interest @ 1% per month on this tax

3. If you have ESOPs/RSU from Foreign Companies this should be disclosed in Foreign Assets and liabilities schedule. Some employers would have opened bank accounts in that country to settle your ESOP transactions. This is also required to be disclosed under foreign bank accounts. If the ESOPs and RSUs are from unlisted Companies then it also has to be disclosed under unlisted shares held. Additionally if you are Indian resident as per the Income tax law (most of you will be) your global income becomes taxable and any dividend received on these ESOPs or capital gain on sale of ESOPs of foreign Companies has to be offered to tax. However, if there are taxes deducted on these transactions the same can be claimed by filing Form 67.

4. For current year if you are in salary bracket above 20 lakhs then new regime will be beneficial mostly unless you have housing loan interest  from Self occupied property. Under new regime Employer contribution to NPS up to 10% of basic salary can be claimed as exemption.

5. Get a good consultant today itself and plan the your finances accordingly. In case of salaried individuals there are very less avenues to save tax after March

Income Tax

Chartered Accountant

Welcome to Product Managers's Private Community

How much of a hike should one expect while switching roles (for a PM role)

I have started giving interviews and the expected CTC i had mentioned was with a 40% hike. Nope, i have received my appraisal in the range of 15%, due to good performance. Should I revise my expected CTC? How does this usually work?

Hike while switching companies

I know 44ADA exists but not for salaried employees

Can someone confirm? I smell fishy on this advice

Consultant

Welcome to Software Engineers's Private Community

Those who are earning more than 50lpa base how much tax do you end up paying? 😶‍🌫️

Tax on 50lpa+

So like many/some of us, I claimed HRA more than actually paid quoting my landlord pan. Now when he was filing ITR, his CA found this out, probably through AIS. He asked me to get it fixed and vacate. Question:

1. Has anyone else faced it?
2. What would be the best solution? My CA suggested to request the landlord to accept that extra income on ITR and pay tax. I will offer her to pay the difference, Reason being that if he rejects, it will eventually come to me as IT notice and then I would need to provide evidence which I won’t have for inflated amount .

Advice needed and word of caution

UX/UI Designer

Hello guys, please suggest a smallcase for long term investment (10-15 yrs). Fine with high risk smallcases as this is a long term investment.
Thank you.

Smallcase suggestion

Data Analyst

The foreign companies pay you the exact amount without deduction and the taxes need to be paid by the individual.

Does the section 44ADA really help to save tax?
What's the benefit if someone is earning the same amount from an Indian company and the same from a company outside India?

I've read the rule change if you make above 50L. I would like to know from people who are actually paying freelance taxes.

Taxation on income from foreign companies?

So this is something that I have been researching for a while, apart from very well known instruments such as-(only mentioning the ones that should be done by everyone irrespective)
* 1.5L annually through 80C
* 50k standard deduction 
* HRA claim
* Donation claims
* Insurance/Medical claims

How are you folks optimising your post tax income?
Would really like to hear it from people getting >= 24 LPA fixed, since from this point onwards a major chunk (almost 20% goes in taxes) and it really hurts.

Tax Savings for 30% slab

I paid 4.8L Tax and my CA somehow managed to get back 30k refund. Wanted to know if people here in similar bracket or higher .. Have managed get higher refund.
I chose old slab coz the greytHR portal said I’ll save more in that.
I don’t have a housing loan,
I have shown HRA , insurance and mutual funds

Refund from ITR ?

Govt of India is best at killing Middle Class. What percentage of your total CTC did you pay in tax. Income Tax department id the new Sahukar.

Percentage of Total CTC did you pay in tax ?

I fall under the 30% income tax bracket and my taxes have been deducted close to 5.5L. I have used all 80c, 80D, 80CCD etc. Is there anyone who can help me with the maximum possible tax refund?

Claimed only 40% in 44ADA, should I revise to claim 50%? I don't want to get into scrutiny

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