Is there exemption on hire in new regime?

Is there any exemption on home hire in earnings tax’s new regime for evaluation yr (AY) 2024-25?

—Dilip Saksena

Under the brand new tax regime (relevant for AY2024-25), with respect to let-out home property, a taxpayer can declare deduction of municipal tax paid from the gross hire to reach on the annual worth of the let-out property.

Further, deduction of 30% of the annual worth and curiosity payable if any in direction of housing mortgage additionally continues to be accessible for figuring out the earnings from home property. However, any loss generated below the mentioned head of earnings, on account of this deduction, can’t be set off towards earnings from every other head of earnings in the identical yr or carried ahead to any subsequent years, below the brand new tax regime.

Deduction in direction of principal reimbursement of housing mortgage is not going to be accessible below the brand new tax regime.

It is necessary to declare possession of any international shares within the earnings tax returns (ITRs). However, how will we declare the possession of international mutual funds and index funds?

—Name withheld on request

As per the ITR varieties for fiscal 2022-23, in case you are a resident and ordinarily resident (ROR) in India, it is best to report the international mutual funds, index funds in ‘Schedule FA–details of foreign assets and Income from any source outside India’ below the related subhead.

Since mutual funds and index funds are more likely to be within the nature of fairness/debt linked funds, the identical is disclosed within the sub-head ‘A3 – details of foreign equity and debt interest held in any entity’.

The prescribed particulars resembling date of buying the curiosity, preliminary worth and peak worth, closing worth of funding, gross quantity paid or credited, gross proceeds from sale or redemption of funding, and so forth., are required to be reported herein, for the calendar yr ended 31 December.

Depending upon the character of funding simply in case they don’t slot in desk A3, it’s possible you’ll think about reporting within the sub-head ‘D- details of any other capital asset held’ or every other sub-head as relevant and supply the main points prescribed therein.

If your whole earnings exceeds ₹50 lakh, then these international mutual funds and index funds also needs to be reported in ‘Schedule AL-assets and liabilities’, at value, below the sub-head ‘Shares and securities’ as at 31 March.

Income, if any, from these securities also needs to be reported within the related earnings schedules of the ITR.

Parizad Sirwalla is companion and head, world mobility providers, tax, KPMG in India.

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Updated: 23 Jul 2023, 09:38 PM IST