I have been a non-resident Indian (NRI) for many years and have invested in Indian stocks using income earned abroad, deposited in my NRE account. In FY25, I sold some shares and made capital gains, but my AD (authorized dealer) banker deducted TDS on the gains. I thought income from NRE accounts was exempt from … Read more
When you sell your old piece of jewellery to buy a new one, you are meant to pay capital gains tax on the sale. It is vital to note that the sale of gold, even for the purpose of buying a new ornament, is seen as the sale of an old asset. In Budget 2024, … Read more
Stock market losses are never pleasant—whether through direct equities or mutual funds—but they offer a rare silver lining: the potential to reduce your tax liability through capital loss set-offs. Here’s how savvy investors can use this to their advantage. Set-off against gains Capital losses can be set off against capital gains, allowing investors to reduce … Read more
The date of acquisition for the property inherited by you from your father will be the date on which your father had purchased the property. The cost and date of acquisition for a capital asset acquired under a will or as a gift, will be the cost and the date for which, and on which, … Read more
My son resides in the US, whereas I stay in Pune. My son owns two house properties in Pune. Can I pay municipal taxes on his behalf for those properties? —Name withheld on request I assume that your son is a non-resident since he resides in the US. According to Foreign Exchange Management Act (Fema) … Read more
Fixed-income investments such as fixed deposit (FD) interest, bond interest, and debt mutual funds are typically taxed at the marginal rate (slab rate). The 2023 budget had abolished the benefit of long-term capital gains tax or LTCG for debt mutual funds. However, there’s a notable exception in the tax system for certain bond transactions. If … Read more
The changes in the capital gains tax announced in the Union budget for FY25 are rational decisions that will benefit people in most scenarios, and it is for the government to decide on the suggestions that come up, Central Board of Direct Taxes chairperson Ravi Agarwal said in an interview. “We feel that this … Read more
Budget 2024 removed the provision of indexation in the calculation of capital gain tax. A study tried to evaluate its impact on the quantum of taxes and discovered that the taxes, on average, would increase considerably. This study simulated tax calculations for 10 major cities and found out that LTCG taxes on average increase 2.9 times without … Read more
Taxpayers are expecting stab-rate changes and higher deductions in the old tax regime ahead of the 31 July deadline for filing income tax returns, but Ranjeet Kumar Agarwal, president of the Institute of Chartered Accountants of India believes the old tax regime could be discontinued in phases. While he is not in favour of offering … Read more
The finance ministry plans to impose higher taxes on futures & options (F&O) transactions in the upcoming Union Budget, as per recent reports. Proposed changes include reclassifying these transactions as ‘speculative income’ from ‘non-speculative business income’ and potentially introducing TDS on them. This news has unsettled the trader community. Let us understand why. Derivatives are … Read more