A recent tax law change is making share buybacks more expensive for investors. Effective October 1, 2024, the tax on share buybacks, previously paid by the company, will now be the responsibility of the shareholder. Key Changes and Their Impact Strategies to Reduce Your Tax Hit Since you can’t directly lower the tax on the … Read more
HRA Claims for Rent Paid to Parents: A Guide to Staying Out of Trouble with the Taxman In the midst of tax season, many salaried employees look for clever ways to reduce their tax liability. A popular strategy that often comes up is claiming House Rent Allowance (HRA) for rent paid to parents. While this … Read more
“Simplicity could cost you ₹2-3 lakh a year”: CA warns of hidden costs in new tax regime While the new tax regime looks cleaner on paper, Kaushik urges individuals to resist switching blindly. “The old regime rewards those who plan their money wisely,” he asserts. The new tax regime, widely promoted as a “simpler” alternative … Read more
Understanding Gift Tax Rules in India: A Practical Guide for ITR Filing Receiving a significant gift can be a joyous occasion, but it’s essential to understand the tax implications. In India, under Section 56 of the Income Tax Act, 1961, gifts are considered income and may be subject to tax, particularly if their value exceeds … Read more
Based on the information provided, here is a comprehensive guide for salaried professionals on how to save tax and increase their take-home pay. 1. Optimize Your Salary Structure A smart salary structure is the foundation of effective tax saving. By working with your HR department, you can incorporate various tax-saving allowances and benefits into your … Read more
Why a ₹20 Lakh Salary Can Still Feel Like Being Broke: A CA’s Take on the Middle-Class Money Trap Even with what many consider a dream salary, a large portion of India’s middle class feels stuck in a financial bind. Chartered Accountant Nitin Kaushik explains this paradox, revealing that the problem isn’t the income itself, … Read more
In an effort to avoid scrutiny from the income tax department, it’s wise to be mindful of certain financial activities that can trigger an automatic notice. While it’s not about doing anything illegal, simply crossing specific transaction thresholds can put you on the department’s radar. A seasoned tax expert, CA Nitin Kaushik, explains that financial … Read more
Don’t get a tax notice this year! Before you file your ITR, a quick check of your Annual Information Statement (AIS) is essential. The Income Tax Department is using AI and analytics to cross-verify your declared income with the data in your AIS, so any mismatch could lead to a penalty. What is AIS? AIS … Read more
Navigating your first job offer and the world of taxes can be confusing, especially when deciding between the old and new tax regimes. Let’s break down which option will give you the highest in-hand salary with a ₹10 lakh CTC. Understanding Your Salary and the Tax Regimes Your total Cost to Company (CTC) is ₹10 … Read more
It’s ITR filing season again, and there’s some important news you need to know, especially regarding the tax rebate and deadlines for the Financial Year 2024-25 (Assessment Year 2025-26). Deadline Extended for FY2024-25! Good news! The income tax department has extended the ITR filing deadline for FY2024-25 from July 31, 2025, to September 15, 2025. … Read more