Tax Liability for FY 23-24

Income Tax
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1

Hello @TeamQuicko

I have only the below 2 income, how much tax I have to pay? Am I eligible for basic exemption and rebate?

Interest income - 1 lac
LTCG on house sale - 5 lac

Thank you.

2

Hi @Nyk ,

You can file your income under New/Old regime where ‘Basic exemption limit’ is 3 lakh/2.5 lakh respectively. Since you do not have business income, you can choose whichever regime is more beneficial to you without any restriction.

Rebate under section 87A, is available for following Income levels:

  • Under New Regime - upto 7 lakhs (Rebate = Tax payable or 25,000 ~ whichever is less)
  • Under Old Regime - upto 5 lakhs (Rebate = Tax payable or 12,500 ~ whichever is less)

After considering the income you mentioned, it seems like new regime would be beneficial. (Refer my calculation below)

Tax computation
Tax computation689×502 31.9 KB

Note that the tax rate for LTCG on sale of House is 20%

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3

Hi @radhesh23k ,

Thanks for the reply.

But, I think there is no rebate available under New Regime for Special tax rate income. So, here i think the tax will be 60k + cess.

And, i am not sure if even 3 lac exemption is allowed on special tax rate income.

Please check this.

Thank you.

@Surbhi_Pal can you please confirm this? Thank you.

4

Rebate u/s 87A is not available on LTCG from equity or mutual funds specified under section 112A. It is available on all other capital gains. Also, Resident Taxpayers can benefit from adjusting the special rate income against the basic exemption limit to reduce taxes.

Refer:
https://learn.quicko.com/rebate-under-section-87a-income-tax-rebate#1-what-are-the-eligibility-criteria-to-claim-a-rebate-us-87a

https://learn.quicko.com/section-112-of-income-tax-act-capital-gain-long-term-capital-assets#2-adjustment-of-ltcg-us-112-against-basic-exemption-limit

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5

Currently there is an error on the income tax website which is not calculating rebate u/s 87A for special income (except incase of income under section 112A, winnings from lottery, etc). So this may be your issue as well.

Refer to this thread:
https://x.com/AbhasHalakhandi/status/1812341239838081288

1 Like
6

Hi @radhesh23k,

The Income-tax utility has updated the calculations of rebate u/s 87A under the new tax regime. Henceforth, the rebate will not be available to any kind of special-rate income.

Hence in your case @Nyk, the interest income of 1L will be exempted. The basic exemption under the new regime is 3L and hence, 2L LTCG will also be exempted. The remaining ₹3L LTCG will be taxed at 20% and hence the tax liability will be ₹60,000.

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