Budget 2026 has clarified the tax treatment of sovereign gold bonds. They are tax-free only for original subscribers who purchase from banks or the RBI, not from the secondary market and hold them to maturity (8 years). Those who purchase SGBs in the secondary market must pay capital gains tax.  This shall take effect from “1st…

Budget 2026 has proposed that ” no deduction shall be allowed in respect of any interest expenditure incurred for earning dividend income or income from units of mutual funds, applicable for the Financial Year 2025-26 onwards. If one borrows money to buy shares or MFs and receives dividends or income from units (IDCW), the income…

After each budget, many money managers get confused, raise all sorts of doubts, and blame the government for using confusing language. Here are simple steps to handle budget announcements without confusion! 1. The ideal approach: Ignore all pre- and post-budget noise and enjoy your life! This is because the budget is an event for content…

This is an updated capital gains taxation rules ready reckoner by tax expert Manmohan Sethumadhavan after taking into account the amendments to the Finance Bill 2025. Update July 2025: The file was updated after an error was pointed out by a reader. Please download the updated file from below. Only two changes were to capital gains taxation…

A reader says, ” This is concerning the article titled: Is 87A rebate applicable for capital gains after budget 2025. It mentions that the rebate is available for LTCG – Debt funds – special rates for FY 2024-25. However, the calculator on the income tax department website does not provide the rebate. This is for…

AIF means any fund incorporated, which is a privately pooled investment vehicle that collects funds from sophisticated investors, for investing it following a defined investment policy for the benefit of its investors. These are governed by the SEBI (Alternative Investment Funds) Regulations, 2012. There are three categories of AIFs. About the author: Manmohan Sethumadhavan is a…

Unit Linked Insurance Policy is a life insurance policy that has components of both investment and insurance and is linked to a unit as defined in regulation 3(ee) of the Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019, governed by section 10(10D) of the Income Tax Act 1961. About the…

Previously, taxpayers could file belated returns up to two years from the end of the relevant assessment year without incurring any penalties other than interest, except that these returns did not allow carry forward of losses. The period for filing belated returns was reduced to one year and then further restricted to the end of…

Background of the case: For the financial year 2023-24, a rebate of Rs. 12,500 was available under Sec.87A for the old regime and Rs. 25,000 for the new regime. However, from July 5 onwards, this rebate was not made applicable to special rate incomes in the new tax regime, following a software update. Budget 2025…

We have released a free New Tax Regime (new slabs) vs Old Tax Regime Calculator after Budget 2025. We now discuss FAQs. 1. Is income up to 12L or 12.75L tax-free? Both. It is 12L for non-salaried and 12.75L for salaried employees, including the standard deduction.  2. Does this mean 12L is the new tax-free…

NPS Vatsalya is a contributory pension scheme regulated and administered by the PFRDA for all minor Indian citizens. Just like PPF, the account will be opened in the name of the minor and operated by Guardian with the minor as the sole beneficiary. Read our earlier review: What you need to know before considering NPS Vatsalya…

Budget 2025 has further reduced the tax burden in the new tax regime. Use this free calculator to compare the old and new tax regimes (calculations for past new tax regime slabs are also available). This comparison table was originally prepared by Vinay Vittal, modified by Balasubrahmanyan, and then by me after budget 2024. This…

We find out what percentage of our income we pay as tax in the new tax regime. Take, for example, a salaried tax-payer with an income of Rs. 11 Lakhs. After accounting for the standard deduction of Rs. 75,000, the net taxable income is Rs. 10.25 Lakhs. We will not consider any other deductions (like…

In response to our article, Real Estate Taxation Example After Finance Bill 2024 Amendment, a reader asks, “Does the Financial Bill clearly mention that for capital gains taxation at the new 12.5% rate, the cost of acquisition for the property will be the value of the property on April 1, 2001 and not the actual…

A reader says, “I’m 45 and have reached 60:40 Equity: Debt portfolio. I have 15 more years of service and don’t plan to take Early retirement. My target corpus has not yet been reached. I have invested in NIfty 50 and NIfty Next 50 for equity, PPF, NPS, and gilt funds for long-term equity and…