l Is there any tax-free threshold for dividends received by senior citizens?
—Rohan Chaudhary
Dividend income is taxable in the hands of investors at their applicable slab rates. There is no specific tax-free threshold or separate exemption exclusively for dividend income, including for senior citizens. However, senior citizens may benefit from the applicable basic exemption limit under their chosen tax regime. Under the default new tax regime, the basic exemption limit is Rs 4 lakh, while it is Rs 3 lakh under the old tax regime. So, if the taxpayer’s total income, including dividend income, falls within this limit, there would be no tax liability. Further, under the new regime, the Section 156 rebate effectively provides relief where total income does not exceed Rs 12 lakh, subject to the prescribed conditions.
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l As long-term capital gains from equity are tax-free up to Rs 1.25 lakh a year, can I withdraw the gains up to that amount now? Also, if I have to set-off losses from some shares, what should I do?
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—Rachit Goel
Long-term capital gains (LTCG) on listed equity shares and equity-oriented mutual funds are exempt up to Rs 1.25 lakh per financial year. Therefore, you can sell shares to book gains up to this limit without paying any tax. For the set-off of losses, long-term capital losses can be set off only against long-term capital gains, whereas short-term capital losses can be set off against both short-term and long-term capital gains. Any unabsorbed capital losses can be carried forward for up to eight consecutive years, provided the ITR for the year in which the loss is incurred is furnished within the prescribed due date.
l We have a joint home loan and the interest payout for this financial year will be around Rs 5 lakh. Can I and my wife claim interest deduction of Rs 2 lakh each?
—Vipul Kumar
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A joint home loan does not, by itself, mean that both borrowers can automatically claim a deduction of Rs 2 lakh each. Under Section 22 of the Income-tax Act, interest on borrowed capital for a qualifying self-occupied residential property is subject to a deduction limit of Rs 2 lakh per taxpayer. Where the property is jointly owned by the husband and wife, the loan is jointly availed and their respective ownership and repayment contributions are identifiable, each may claim the interest attributable to their share, subject to the individual limit of Rs 2 lakh. However, this deduction is not available under the new tax regime.
The writer is managing partner, AKM Global. Send your queries to fepersonalfinance@expressindia.com
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors should assess their financial goals, risk appetite and consult a qualified financial advisor before making investment decisions.
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This article was first uploaded on October two, twenty twenty-six, at forty minutes past eight in the night.
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