Your Earnings Tax Queries: Is it obligatory to switch PF to a brand new firm account after switching jobs?


he loss that you’ve got incurred shall be reported as short-term capital loss, which you’ll alter in opposition to your short-term capital positive aspects.

By Chirag Nangia

I’ve offered Dewan Housing Finance Ltd NCDs inside a interval of lower than three years at a loss. Can I alter brief time period capital achieve in opposition to this loss?
—Ajit Kumar Gupta

For tax functions, capital property are required to be categorized as both short-term or long-term, primarily based on the interval of holding. Non-Convertible Debentures (NCDs) or bonds are thought-about as long-term capital property if these are held for a interval of greater than 36 months. Else, the identical are considered short- time period capital property. Additional, Earnings Tax provisions enable set-off of brief time period capital losses in opposition to each brief/ long run capital positive aspects. Subsequently, the loss that you’ve got incurred shall be reported as short-term capital loss, which you’ll alter in opposition to your short-term capital positive aspects.

Please advise in regards to the notification below Part 54EE for investing long run capital positive aspects in specified property.
—N A Viswanathan

The place capital positive aspects arising from switch of a long-term capital asset are invested in specified funds, tax-payer can declare exemption below Part 54EE. ”Specified funds” for the aim of this part shall be fund-of-funds which basically invests in startups or shares of a startup. The exemption is restricted as much as Rs 50 lakh within the monetary yr and the following monetary yr. Alternatively, chances are you’ll declare deduction below Part 54F should you make investments the LTCG from switch of any asset in a “new residential home property” inside the stipulated timeframe.

I joined a brand new firm six months in the past. Is it obligatory to switch PF to a brand new firm account? The brand new agency’s PF is the corporate’s personal belief. Is it secure to switch and what are the tax implications?
—Sattish

Workers having a number of Workers’ Provident Fund IDs are required to switch PF steadiness into the most recent ID. Switch of steadiness out of your earlier employer to your present employer could be finished on-line by way of the unified portal of EPFO. You should present all private particulars and date of exit from earlier employment after which proceed to file the switch request on-line by way of the One Member-One EPF Account (Switch Request) module for submitting switch declare.

The author is director, Nangia Andersen India. Ship your queries to [email protected]

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