By Chirag Nangia
*I opted for the brand new tax regime initially of 2021-22 and there’s extra tax deduction. How can I modify to the previous tax regime on the time of submitting ITR?
—Atul Khare
It has been clarified by the CBDT that intimation to employer declaring intention to go for concessional tax regime shall solely be for the aim of TDS, which can’t be modified throughout the yr. However, on the time of submitting the return of revenue, one might swap to the previous regime. Thus, choices on the time of submitting of return could also be totally different from intimation made by worker to employer. The ITR Form asks the selection of the person and tax is computed accordingly. The TDS in extra of the ultimate tax legal responsibility (ascertained after bearing in mind the allowable deductions/ exemptions), might thus be claimed as refund by choosing the previous regime within the ITR.
* I’m a 79-year-old lady. My husband had purchased a income web site 40 years in the past and after his demise in 1991, the property was transferred to my identify. I constructed a small home and bought it final yr. I obtained `18 lakh. I’m a household pensioner and have some revenue from FDs. Do I have to file ITR for this transaction and the way do I save tax?
—Sharadamba N
Since the property was held for greater than 24 months, the capital features on sale is classed as long-term capital achieve (LTCG). As you inherited the property, the price of acquisition shall be the upper of the particular price to your husband or FMV as on April 1, 2001. Any price incurred thereafter is handled as ‘cost of improvement’ . Both these prices need to be subtracted, after indexation, from the sale worth to reach on the taxable capital features. If this LTCG is invested for getting a home (inside two years from date of switch) or for building of a residential dwelling (inside 3 years from the date of switch), then it is going to be exempt from tax.
Furthermore,the exemption restrict for submitting ITR FY22 for these above 60 years is `3 lakh. If your complete revenue is greater than this, you need to disclose the small print of all incomes earned together with the small print of this sale in ITR 2.
The author is director, Nangia Andersen LLP. Send your queries to [email protected]
Source: www.financialexpress.com”