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

 

[ittybit]

@dj_seven Nope. On paper it may look that way but you can claim more deductions in old regime. When your salary increases, you generally spend more on rents or take a loan and hence you can claim more deductions. So old regime is still better.

 

[bulldog87]

@ittybit It is not on paper. In reality, if you are an honest person, new regime will save you money if your salary is more than 15 LPA.

If you can do shady shit like donate to political party and get koney back as cash or declare that you paid an absurd rent to your parents (no normal landlord will give you their PAN to claim 30k/month rent payment , unless they are NRI).
You can try to claim for disabled relative care. But if IT Dept or your company asks you for proof, you can get shafted. Many Infy employees were fired after they used these under hand tactics (idea given by some CA in Hyderabad or Bangalore) to claim refund during ITR filing. IT dept sent notice to Infy to get details.

For loans, you can claim deduction only on the interest payment part.

A colleague who got a pay hike to 18 LPA switched to New Regime as even after paying EMI for 50 Lakh Home Loan, he could not get enough exemption to get advantage in Old Regime.

 

[ittybit]

@bulldog87 I am an honest person and i claim deductions of 1.5 lakhs in 80c, 2.5 lakhs in HRA (owner gives rent receipts and he isn’t NRI) and around 50k in LFA. Even without loans, old regime is better for me. My colleagues with loans claim more deductions. There’s no shady shit.

 

[wewillie]

@bulldog87

declare that you paid an absurd rent to your parents

Why is this shady though? As long as taxation rules are followed on both sides (parents and self), it's legal. For e.g. if one stays with parents and contributes in household expenses, why can't they claim it as rent paid?