Tax reckoning in the year of retirement
This query is : Resolved
05 April 2020
Dear Sir,
I am due for retirement in June 2020 on attaining 60 years. So, for the FY 2020-21, whether I would be considered as Senior Citizen for IT rates ? How the 80C benefit would be reckoned if I invest 1.5 lacs.. Is it advisable to go for
new regime or to continue in old regime for the FY 2020-21 ? Kindly clarify.
I am due for retirement in June 2020 on attaining 60 years. So, for the FY 2020-21, whether I would be considered as Senior Citizen for IT rates ? How the 80C benefit would be reckoned if I invest 1.5 lacs.. Is it advisable to go for
new regime or to continue in old regime for the FY 2020-21 ? Kindly clarify.
06 April 2020
Dear Mr Nand,
Yes you will be senior citizen for the AY 2021-22(FY 2020-21) since you have attained the age of 60 years during the FY 2020-21.
Regarding slabs pl stick to old rates if your income during the FY2020-21 is below 12.5 lacs to 15 lacs.
Benefits of sticking to old rates are as below.
Enhanced senior citizen limit : 300000 (in new rates it is 2.5 lac only)
utilise 80C :150000, 80D : 50000, 80TTB : 50000, Standard Deduction in case you receive pension, God forbid 80DDB RS 100000/- for specified diseases. (In case you do not have anything apart 80C Rs 9 lacs is the break even point.)
Yes you will be senior citizen for the AY 2021-22(FY 2020-21) since you have attained the age of 60 years during the FY 2020-21.
Regarding slabs pl stick to old rates if your income during the FY2020-21 is below 12.5 lacs to 15 lacs.
Benefits of sticking to old rates are as below.
Enhanced senior citizen limit : 300000 (in new rates it is 2.5 lac only)
utilise 80C :150000, 80D : 50000, 80TTB : 50000, Standard Deduction in case you receive pension, God forbid 80DDB RS 100000/- for specified diseases. (In case you do not have anything apart 80C Rs 9 lacs is the break even point.)
Message likes :
1 times
08 April 2020
Thank you so much for your response. I would be retiring from service of the present employer in June - i.e., only 3 months in FY 2020-21. After that I may join a new employer. With the present employer, I can avail 80C benefit of 1.5 lacs ? Kindly clarify. Thanks in advance.
09 April 2020
Yes, Of course in a entire year (irrespective of number of employers) you can avail Rs 150000/- under 80C maximum from all employers.
Message likes :
1 times
21 April 2020
Thanks a lot. One more related query. In case, after joining the new employment, if the total income goes beyond Rs. 15 lacs, what is your advice. Please let me know. Thanks in advance.
22 April 2020
In that case, pl stick to the old regime. It is advisable overall to stick to the old regime if there is fluctuations expected in income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- TAN for Partnership
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- STCG FOR GOLD ETFs
- Long Term Service award taxability in hands of company
- Free lancer income
- REGARDING GST LIABILITY/....
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
