We all know that if we sell a residential property and purchase another one, no capital gain tax is required to be paid, provided certain conditions are fulfilled (Section 54 of the Income Tax Act, 1961).  We are also aware that such an exemption is also available on profit from long-term assets other than residential…

A reader has pointed out an error in the Capital Gains Ready Reckoner regarding the indexation of listed and unlisted bonds/debentures. According to the 4th Proviso under Section 48, indexation is not available for debentures/bonds.  Abdul says, “In your Freefincal capital gains tax ready reckoner, there is an error regarding the Indexation on the Listed…

Do you remember the interesting rule while setting off losses from previous years? While setting off long-term capital loss brought forward from previous years against capital gains from equity under Section 112A, the loss is first set off against the gains, and only then is the exemption of ₹1 lakh (₹1.25 lakhs from FY 2024–25…

A reader says, “This is about your article ‘Is 87 A Rebate Applicable for Capital Gains after Budget 2025‘ dated 3 February 2025 on your site. Can I avail of the Rs 12,500 rebate for FY 2024-25 on equity LTCG if my taxable income is within Rs 5 Lakhs?” Tax expert Manmohan Sethumadhavan responds.  …

If you have capital gains and dividends to report to the taxman, correct this auto-fill while filing ITR! About the author: Manmohan Sethumadhavan is a freelancer, investor, and personal finance enthusiast “in search of the absolute truth.” You can follow Manu on Twitter @ManuTsr. Also, read his article: How to calculate LTCG with Grandfathering for equity shares…

In this article, we discuss How to calculate LTCG with a Grandfathering clause for equity shares that underwent split and how to fill Schedule 112A. About the author: Manmohan Sethumadhavan is a freelancer, investor, and personal finance enthusiast “in search of the absolute truth.” You can follow Manu on Twitter @ManuTsr. I purchased 1000 Nos….

Readers often ask,  “How much capital gains tax should I pay if I have no other income source?” The answer is quite simple. Up to the tax-free limit (using the then prevailing tax slabs), the capital gains are tax-free if there are no other sources of income (this is quite rare, if not impossible). We…

In this article, Manmohan Sethumadhavan, answers the question, “Should Professionals or Business Owners File Form-10IEA for continuing in Old Tax Regime for AY 2024-2025 (FY 2023-2024)” and considers several other scenarios. Note that this is only for people with business/ professional income, since others can choose any regime any year without any limits. About the…

A reader says, “I understand that the new tax regime is better than the old one because it does away with tax-deductible investments or purchases (80C, 80D, home loan interest, etc). However, I am used to investing in such instruments, and since I will continue to use them, is there any way to find out…

A reader says, “Thank you for the fantastic new tax regime vs old tax regime calculator for FY 2023-2024 (AY 2024-2025). It is really easy and useful. Currently, the new regime is beneficial for me.  Can I switch back to the old tax regime if I wish to buy a house in future?” The old tax…