An NRI cannot claim deduction on home loan interest against his/her Indian income for a property bought in India if the loan has been taken abroad. A taxpayer can maintain only two properties as self-occupied, and will have to pay notional rent on any other properties. Consider liquidity, investment horizon, and returns before investing in capital gains bond
The benefit of concessional LTCG tax can be taken only for deep discount bonds, where the rate of interest is not specified. Profits made on shares and mutual funds become taxable only when you sell, transfer or redeem them. Profits from sale of gold ETFs are treated as LTCG if they are sold after 12 months.
BY Balwant Jain 3 August 2024
The finance minister has proposed to do away with indexation benefits for long-term capital assets of all the categories like taxation of long-term capital gains on listed shares and equity mutual funds presently.
BY Balwant Jain 29 July 2024
You will have to pay the tax on the balance long term capital gains after such set-off. Since the coupon rate is specified for the bonds, you will have to offer the difference as interest for taxation and the same cannot be treated as capital gains at all. Any profit made on the sale of listed security before the completion of 12 months is treated as short-term capital gains.
BY Balwant Jain 27 July 2024
The proposed tax regime will adversely affect the cash flow of small shareholders who will have to shell out tax on the full amount received on buyback whereas the benefit in respect of deemed loss on extinguishment of such shares may or may not be available for set off depending on availability of taxable and eligible capital gains.
BY Balwant Jain 26 July 2024
While removing the indexation benefits the government has compensated the taxpayers by reducing the applicable tax rate on long-term capital gains from 20% to 12.50% on all categories of investments except investment of debt category.
BY Balwant Jain 25 July 2024
It is apparent that the government is trying its best to lure the salaried people to opt for the new tax regime.
BY Balwant Jain 24 July 2024
Presently, as per Section 80 C of the Income Tax Act, an individual and an HUF are allowed to claim deduction upto Rs. 1.50 every year for repayment of the principal amount of home loan taken to buy or construct a residential house.
BY Balwant Jain 22 July 2024
Repayment of principal on education loan cannot be claimed as deduction under income tax laws. Interest earned on bond bought in child’s name will be added to parent’s income under clubbing provisions. Tax deduction for NPS is only available to subscriber.
BY Balwant Jain 20 July 2024
In this article, I wish to give some suggestions to the Finance Minister to make the taxation of capital gain more rational by removing some existing anomalies. Here are my suggestions.
BY Balwant Jain 19 July 2024
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