No TDS on Mutual Fund Capital Gains from April 2020: IT Dept clarifies
The IT department has clarified that TDS will be applicable to mutual fund dividends only and not capital gains
Continue reading →Category: Budget
Archive of articles on the yearly Union Budget of India
Netizens say no to the new tax regime: prefer deductions
“Will you choose the new tax regime or stick to the old one?” Here is what 3216 Facebook and Twitter users voted. Also, did the govt miss a trick while introducing this new regime?
Continue reading →Will TDS apply to mutual fund capital gains from April 2020?
Does the finance bill 2020 propose to deduct ten per cent tax on mutual fund capital gains (along with dividends) at source? An explanation.
Continue reading →Is the interest earned from PPF, EPF, SSY Taxable in new tax regime?
Is the interest earned from PPF, EPF, SSY Taxable in new tax regime?
Continue reading →List of tax deductions in New tax regime (section 115BAC)
These are the tax deductions retained in the New Tax regime (section 115BAC)
Continue reading →New tax regime (section 115BAC): you cannot avail these deductions!
If you choose the new tax regime (section 115BAC) you cannot avail the following deductions.
Continue reading →Equity Mutual Fund Dividends are taxed 12.942% (not 10%): Here is how to avoid this
Budget 2018 has proposed that equity-oriented mutual funds be subject to a 10% dividend distribution tax (DDT) to ensure parity with the 10% LTCG tax on growth equity mutual funds. If you include the surcharge and cess, the rate of dividend tax is 11.648% and if you add the effect of “grossing up”, the full tax…
Continue reading →Why Equity LTCG Tax is not double taxation!
I am surprised at how many people assume that the 10% Equity LTCG tax introduced in Budget 2018 also applies to mutual funds. That is, they think that the Equity LTCG tax is a form of double taxation -the fund houses pay tax once and we tax again when we redeem. This is NOT true!…
Continue reading →Should I book profits each year to lower Equity LTCG Tax?
Readers may recall that I have been covering equity LTCG tax in a series of posts. First, the implications, followed by simple examples on how to calculate LTCG tax after accounting for the grandfather rule. Then we discussed an illustration of how much Equity LTCG tax we need to pay. Now, in the second part of…
Continue reading →Do not buy ULIPs because equity mutual fund LTCG will be taxed!
The day after Budget 2018 proposed LTCG tax on equity and equity oriented mutual funds, life insurers saw an opportunity to push ULIPS as the “go to” instrument now. Abandoning mutual funds in favour of ULIPS only to avoid the LTCG tax is like undergoing chemotherapy to shave a head (Robin Williams*). In this post, I…
Continue reading →Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1
It was announced in Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10%. Here is an illustration of how much long-term capital gains tax you need to pay on a long-term systematic investment in equity or equity mutual funds. This is part one where the LTCG tax after each year of investment…
Continue reading →Budget 2018: Eight important but lesser known proposals + FAQ
Here are eight lesser-known, but important budget 2018 proposals. I have now updated the three budget articles posted yesterday. Please do have a look: UPDATE: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 Long-Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) Budget 2018-2019: Long-Term Capital Gains from Equity to…
Continue reading →Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019)
As published it was announced in Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10%. Here are some examples of how this works. Example 1: I purchase 10,000 units of an equity oriented fund (or stock, see definition of fund in the above post) at Rs. 10 NAV per unit on 4th Aug…
Continue reading →Budget 2018-2019 Major Benefits to Senior Citizens!
Budget 2018 has a slew of benefits for senior citizens. Here is a list. Also see: Budget 2018-2019: Long Term Capital Gains from Equity to be taxed at 10% – Implications New: Long Term Capital Gains Taxation from Equity: Examples (Budget 2018-2019) UPDATE: Equity LTCG Taxation: How much tax do I need to pay? Illustration part 1 1:…
Continue reading →Long Term Capital Gains Computation with base year 2001
Budget 2017 has proposed a slew of benefits related to long-term capital gains. The most important is the shift of the base year to be used for long-term capital gains computation for all asset classes. Here is a summary and illustration of long-term capital gains computation with base year 2001. 1: Change in duration for computation…
Continue reading →