This article discusses how Balanced Advantage Funds and Dynamic Asset Allocation Funds will be taxed after the 2024 Budget. Dynamic Asset Allocation or Balanced Advantage Fund can invest in equity/ debt that is managed (0% to 100% in equity & equity related instruments; and dynamically 0% to 100% in Debt instruments). So they could be…
Continue reading →A reader says, “I am 47 and have a wife and 15-year-old daughter. I have my own house, and I am paying one lakh emi. The balance loan is 1.4 cr. I have been considering resigning from my current job and, depending solely on my corpus, investing primarily in FD, mutual funds, and some stocks.”…
Continue reading →This article discusses how multi-asset funds will be taxed after the 2024 Budget. A multi-asset fund should invest in at least three asset classes with a minimum allocation of at least 10% in each asset class. So they could be taxed like equity funds, debt funds or other funds depending on whether they hold 65%…
Continue reading →In this article, we address some more questions readers have asked in response to Budget 2024: 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 property. Q1: “I understand that if I sold an equity…
Continue reading →In this edition of the reader story, A 25-year-old shares his investment journey. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the previous editions are linked at the bottom of this article. You can also access the full reader story archive. Opinions published…
Continue reading →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…
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