Many rule changes have been made by the Income Department in the last few years. This affects our savings and investments. Recently, the Income Department has issued new rules regarding fixed deposits.
New Delhi: Many changes have been made in the Income Tax Law in the last few years. This has also affected our savings and investment habits. However, many times we knowingly or unknowingly invest in such schemes without thinking,
Where we do not get any benefit of saving tax under Income Tax Act. If you have similar questions related to tax in your mind then you can send us your questions, which we will continue to answer through tax experts in the next series.
If I want to transfer three lakh rupees from my account to my wife’s account and put it in fixed deposit. My wife is a housewife and does not pay income tax. Do I have to pay tax on the income from FD?
Answer – Yes, according to Section 64(1) of Income Tax, the interest received from fixed deposit will be added to your income and you will have to pay tax on it.
Is the interest received from PF tax free?
Answer – Before Budget 21-22, PF was completely income tax free, but after Budget 2021-22, if the annual investment in PF is more than Rs 2,50,000, then section 10(11) and 10(12) of Income Tax. ) Under this, interest received from investments above Rs 250000/- will be considered taxable and will be added to your income.
In addition to Rs 1,50,000 under Section 80C of the Income Tax Act, if I deposit Rs 50,000 in Tier 2 of NPS, will I get additional income tax exemption under Section 80CCD (1B) or not?
Answer: No. Investments in Tier 2 do not qualify for exemption under section 80CCD(1b) of the Income Tax Act. To avail additional exemption under 80CCD (1B), you will have to invest in Tier 1.
Authorized site of ITR filing
4. Question – What is the difference between Section 80TTA and 80TTB of Income Tax?
Answer – 80TTA
1. Residents and HUFs can avail its benefits.
2. In this you can avail exemption of interest income up to Rs 10000/- only from savings account.
3. Non-resident Indians (NRIs) can avail exemption on interest earned from NRO savings account.
80TTB
1. Only senior citizens (who are above 60 years of age) can avail its benefit.
2. In this, you can avail rebate of interest received from savings account as well as fixed deposit account up to Rs. 50000/-.
3. Non-resident Indians (NRIs) cannot avail exemption on interest earned on NRO account.
5. Question – Is the new tax system better or the old tax system and what needs to be filed apart from income tax returns to avail its benefits?
Answer – It depends on the taxable exempt investments of the taxpayer, and if your income is from business income then you can take advantage of the new income tax system by filing Form 10IE but you can take advantage of it only once in your lifetime.
But if your income is other than business income, then you can take advantage of the new tax system by filing Form 10IE and the taxpayer can change it every financial year.
