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The old tax regime has four tax slabs: Income Slab Tax rate Up to Rs. 2.5 Lakh No tax Rs. 2.5 to 5 Lakh 5% Rs. 5 to 10 Lakh 20% Above Rs. 10 Lakh 30% If net income after all deductions and exemptions does not exceed Rs. 5 lakh, there is full tax relief …
“Income from capital gains” refers to any profit or gain that results from the sale of a “capital asset.” These capital gains are subject to taxes in the year that the capital asset is transferred. We refer to this as capital gains tax. Capital gains are classified into two types: short-term capital gains (STCG) and …
Every year, around 10 million weddings occur in India. Marriage is a cause for great joy and one of the most important financial goals for most Indian households. On this particular occasion, newlyweds and their families typically receive presents and gifts from their friends and relatives. However, such gifts may be subject to income tax regulations. Monetary …
It is usual for parents to invest in their minor kid’s name, whether it is through a fixed deposit (FD), stocks, an insurance policy, or the Sukanya Samriddhi Scheme for a female child, etc. But what if any of these assets generate income, such as interest on a fixed-term deposit? So, let’s quickly look at the tax consequences for …
National Pension System (NPS) provides Systematic Lump-sum Withdrawal (SLW) to its subscribers. In this blog-post, we will see what this SLW facility is, and is it beneficial for retirees to withdraw from NPS through SLW. What is this SLW facility? As we all know, when an NPS subscriber achieves retirement or the age of 60, …
First, let us try to understand what ‘SWP’ is. SWP stands for Systematic Withdrawal Plan, which is a means of redeeming your mutual fund holdings. You provide the mutual fund (in which you have invested) a standing order to redeem a specific amount from the fund on a regular basis. The frequency is normally monthly, …
Many individuals believe that transactions between spouses are tax-free. But the truth is bit more complex. While certain measures exist to avoid the application of taxes on asset transfers between spouses, there are also laws in place to discourage the abuse of these exceptions for tax evasion. Individuals must understand both sides of the income tax equation …
From April 2020 to March 2023, Indian household financial savings totaled Rs. 86.2 lakh crore. Of this, 31.6 lakh crore went into fixed deposits with banks and other financial institutions, while 5.1 lakh crore went into mutual funds and equities, accounting for around 6% of the total movement. That is, just 6% has been invested in mutual funds …
The Finance Act of 2023 removed the indexation advantage from debt mutual funds. It says that profits from funds having an equity proportion of less than 35% will be taxable as short-term capital gains (STCG), regardless of holding duration. Non-equity fund STCG is taxed at their respective slab rate. It is 30% plus surcharge and cess …
Balanced Hybrid mutual funds are mutual funds that invest across multiple asset classes. They are usually a mix of equity and debt assets, although they may also include gold or real estate. Because of their portfolio diversity, balanced hybrid mutual funds have grown in favor among investors. By investing in asset types such as debt …