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
Tax planning is changing for millions of salaried individuals in India. Starting from the upcoming financial year (FY) 2025–26, the new tax regime will become the more attractive option for many, potentially making traditional deductions and exemptions unnecessary for those earning up to ₹12 lakh. Here’s what you need to know about the shift: The … 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
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
You’ve just finished another financial year, and as you gear up to file your Income Tax Return (ITR), you might feel a sense of calm, assuming your employer handled all your tax deductions. But hold on a second! What if you’re among the many salaried individuals who earn a little extra from other sources, like … Read more
Is your family considering splitting PG rental income between parents to save on taxes? It’s a common thought, but proceed with caution! While it might seem like a smart move to divide the income, experts warn that simply diverting rent without changing legal ownership can lead to trouble with the tax authorities. Let’s break down … Read more
Tax season can feel overwhelming, but don’t fret! While the ITR filing deadline for FY2025-26 has been extended to September 15, 2025, it’s always a good idea to get your income tax return (ITR) filed as soon as possible. Tackling it early helps avoid last-minute stress and reduces the chances of errors. Even though the … Read more
The Hindu Undivided Family (HUF) offers Indian families a unique way to manage assets and potentially save on taxes. However, as aspiring Chartered Accountant Krishna Prasath points out, it’s crucial to understand the intricacies involved beyond just the financial benefits. An HUF isn’t merely a tax-saving loophole; it’s a separate legal entity with its own … 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
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