Over the last few days, many readers have asked us if the ey should change their return expectations due to the change in capital gains tax announced in budget 2024. The most significant negative changes are: The long-term capital gains for equity investments have increased from 10% to 12.5%. The increase in tax-free limit to…
Continue reading →Budget 2024 has done away with indexation from all capital gains taxation. Two places where this will hurt the most are real estate sales and debt fund investments made before 1st April 2023. The older the investment, the more the impact. Update: Finance Bil 2024 has been amended. Taxpayers can now choose 12.5% without indexation…
Continue reading →A subscriber to our YouTube channel asks, “I am 20 years old. I want to start investing. Which can I choose, Nifty Next 50 or Nifty Midcap 150 index fund?” For older people like me, it is lovely that you want to start investing so early (I appreciate that it is now quite common for…
Continue reading →Budget 2024 has revised the real estate taxation rule. Long term capital gains tax has been modified from 20% with indexation to 12.5% without indexation for any sale made on or after 23rd July 2024. Update: Finance Bil 2024 has been amended. Taxpayers can now choose either 12.5% without indexation or 20% with indexation, whichever…
Continue reading →In response to our budget 2024 coverage – Budget 2024 Capital Gains Taxation Guide – several readers have asked us for further clarifications. This is an FAQ on capital gains taxation. Update: Finance Bil 2024 has been amended. Taxpayers can now choose either 12.5% without indexation or 20% with indexation, whichever is lower for LTCG on…
Continue reading →In this article, Lakshman shares how he bought a health insurance policy for his family. We are grateful to the members of the freefincal community for generously sharing their research with all of us. Note: Health insurance is an extremely personalized purchase. Please do your extensive research before buying. I started learning about personal finance…
Continue reading →Share buybacks will be taxed as a dividend with the cost of acquistion set as as capital loss from 1st Oct 2024. Why was this done? The budget memorandum states, “Both dividend as well as buy-back are methods for the company to distribute accumulated reserves and thus ought to be treated similarly.” It further adds,…
Continue reading →Budget 2024 has further reduced the tax burden on those opting for the new tax regime. It has been clear for a couple of years now that the old tax regime is unlikely to get any further concessions. Also see: Budget 2024 modifies NPS deduction 80CCD(2) only for the New Tax Regime! Tax payers can use…
Continue reading →There were three proposals related to the National Pension Scheme in Budget 2024. A discussion. 1. The finance minister said, “The Committee to review the NPS has made considerable progress in its work. I am happy that the Staff Side of the National Council of the Joint Consultative Machinery for Central Government Employees have taken…
Continue reading →Many readers have asked us how they should modify their investment strategy after 2024. Some of the critical aspects of budget 2024 that will affect no-so-rich investors are: Tax on equity investments has increased from 10% to 12.5%. The increase of the Rs 1 lakh tax-free limit to Rs. 1.25 is largely inconsequential. Share buybacks…
Continue reading →This article explains how capital gains from different investments will be taxed. These are applicable for redemptions made on or after 23rd July 2024. Indexation benefits are history for all asset classes. Update: Finance Bil 2024 has been amended. Taxpayers can now choose either 12.5% without indexation or 20% with indexation, whichever is lower for…
Continue reading →Budget 2024 has proposed a Big change in mutual fund taxation rules, as explained in our earlier report. This article explains how fund of funds (FoFs) will be taxed from 23rd July 2024. Note: This is based on our understanding of budget documents. Errors, if any, will be updated when they come to our attention….
Continue reading →Here are 16 immediate steps a person who has just started earning should consider to manage their money better. Money is there to be spent. There is no point in saving or investing money without enjoying the present. At the same time, we should also invest some of our money to continue enjoying the present in…
Continue reading →Currently, section 80CCD(2) allows a deduction in the taxable income from National Pension Scheme Employer contributions – 10% from non-government subscribers and 14% from government subscribers. This deduction is allowed in both the old tax regime and the new tax regime. Also see: Budget 2024: New Tax Regime vs Old Tax Regime Calculator: Check which is…
Continue reading →Budget 2024 has revised the real estate taxation rule. Long term capital gains tax has been modified from 20% with indexation to 12.5% without indexation for any sale made on or after 23rd July 2024. Update: Finance Bil 2024 has been amended. Taxpayers can now choose either 12.5% without indexation or 20% with indexation, whichever…
Continue reading →