The Income Tax Department has set the Cost Inflation Index (CII) for the financial year 2025-26 at 376. This crucial index helps taxpayers determine long-term capital gains (LTCG) on asset sales by adjusting the original purchase cost for inflation. The announcement was made on July 1, 2025, and the new index will be effective from … Read more
Diesel car owners in Delhi are facing a harsh reality: they’re paying for 15 years of road tax but can only drive their vehicles for 10. This costly predicament stems from a legal clash between national vehicle registration norms (15 years) and a Delhi-specific ban on diesel vehicles older than 10 years, imposed by the … Read more
“₹7 lakh in trading gains, ₹74,000 tax hit.” Sounds like a bad dream, right? For thousands of Indian investors, it’s a brutal reality. Many are learning the hard way that a profit under ₹12 lakh doesn’t automatically mean tax exemption. Sujit Bangar, founder of TaxBuddy.com, recently highlighted a case that perfectly illustrates this common pitfall. … Read more
Smart Money Move: Loan, Don’t Gift, to Slash High Income Taxes in India High-income earners in India often overlook a powerful tax-saving strategy: loaning money within the family instead of gifting it. As CA Sk Md Affan reveals, this simple choice can save lakhs by sidestepping “income clubbing” rules and significantly reducing your overall tax … Read more
Getting your income tax return (ITR) right can be tough, especially when you’ve made money from capital gains on things like stocks, mutual funds, or property. Tax experts are warning that a simple mistake, like picking the wrong ITR form or misreporting your gains, could lead to frustrating tax notices, delayed refunds, and penalties. “People … Read more
For decades, a clever trick has been used in India to turn black money into white: buying rural agricultural land with under-the-table cash and then selling it years later at full market value, tax-free. But a recent ruling by the Income Tax Appellate Tribunal (ITAT) on May 27th might just put an end to this … Read more
Don’t Get Caught Out: India’s New Tax Rules Demand Detail for Deductions This Year Heads up, taxpayers! If you’re planning to claim deductions under the old tax regime for the current financial year (FY 2024-25, Assessment Year 2025-26), particularly House Rent Allowance (HRA), the government is cracking down on inflated or false claims. This year, … Read more
Fixed deposits (FDs) are a popular choice for investors in India seeking safety and guaranteed returns. However, many overlook crucial tax implications that can silently eat into their earnings. CA Nitin Kaushik sheds light on what most investors miss. The Hidden Drain: How FD Interest is Taxed “FD interest is taxable whether or not you … Read more
Heads Up, Taxpayers! ITR-2 & ITR-3 Utility Delays Affecting Early Filers If you’re a salaried professional, HNI, or freelancer planning to file your income tax return early for Assessment Year (AY) 2025-26 (FY 2024-25), you might face a delay. The Income Tax Department has not yet released the offline utilities for ITR-2 and ITR-3 forms. … Read more
While a large number of retail investors in India face losses in Futures and Options (F&O) trading, many overlook their crucial tax obligations. It’s a common misconception that only profits need to be reported to the tax authorities. However, under Indian tax laws, F&O income is classified as non-speculative business income, meaning both profits and … Read more
