How to prevent surcharge?

[mythriilesque]

@patrick702 Yes

 

[jacquelineblessedangel]

@mythriilesque Thanks

 

[lightlove7]

@mythriilesque My belief is you can't set off the losses incurred in other investments against the income you earn from salary. I hope someone with more knowledge on the matter can expand on it.

 

[pastorvoce]

@lightlove7 This is correct. You cannot offset equity/FnO losses against salary

Source - the sad man that paid 25L in taxes in FY23

 

[resjudicata]

@mythriilesque You can't do that since op is talking about income from salary.

Long term capital losses can only be set off against long term capital gains and short term capital losses can be set off against only LTCG and STCG.

So even if op books some loss, he can't set that off against his salary income.

 

[peppekalle]

@resjudicata That's called tax harvesting. Search it up!

 

[resjudicata]

@peppekalle Yeah, but a capital loss can only be used against a capital gain and not against salary income.

 

[pell]

@jacquelineblessedangel There is surcharge and there is cess as well.

 

[christlovesme22]

@jacquelineblessedangel Faced a similar situation today. Was shocked to learn that 10% surcharge is on entire tax amount. Why the fck on the entire amount. Why not only on the amount above 50L man. Was really heartbroken to see the fcking government take away everything despite doing shit in return for me

 

[harleykid95]

@jacquelineblessedangel Invest in any of the section 80C items before the financial year 31.03.2024 ends. (if you haven't already)

 

[dj_seven]

@harleykid95 How does 80C help with 50LPA. I’m assuming it would be under new regime, you could use NPS contribution. And also you could use Margin Relief provision.

 

[ittybit]

@dj_seven Why did you assume new regime ?

 

[dj_seven]

@ittybit New regime is better after certain limit. Chart in this page explains well…

https://cleartax.in/s/old-tax-regime-vs-new-tax-regime