Tax on Stock Market Dividends:
2014 = 0% (Completely tax-free)
2018 = 10% (Only on dividends > ₹10L)
2020 = Taxed at slab rates (up to 30%)
Example (₹20L dividend):
2014: ₹20L in hand.
2018: ₹19L in hand (₹1L tax on ₹10L excess).
2025: ₹14L in hand (₹6L tax at 30%).
Are dividends still worth it?
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Borrowing Cash from a Friend Could lead to 100% Income Tax Department Penalty TAXCONCEPT
https://taxconcept.net/income-tax/borrowing-cash-from-a-friend-could-lead-to-100-income-tax-department-penalty/
*Are you bringing gold jewellery from abroad?*
There are limits, and formalities - check before you shop! (DH)
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Joint a/c holders can get tax notice due to this issue
https://economictimes.indiatimes.com/wealth/tax/cas-caution-joint-bank-account-holders-about-this-critical-issue-with-tax-rules-that-can-lead-to-tax-notices/articleshow/123423767.cms
From 2026: Your Instagram stories could be your tax evidence!!!!🚨
The Income Tax Bill 2025 has introduced Section 247 which gives officials the power to check your:
✔️ Emails
✔️ Social media accounts
✔️ Cloud storage
✔️ Digital records (even passwords can be overridden)
Why? To catch hidden income, offshore transfers, and digital black money.
This is smart for stopping tax evasion.
But the risk? Your personal financial moves could be monitored without notice. No warrants, no oversight. One wrong flag, and your accounts could get scrutinized.
So basically your digital money is visible now to the government 24/7.
Is there a tax exemption limit for gifting money to a married daughter?
https://www.moneycontrol.com/news/business/personal-finance/is-there-a-tax-exemption-limit-for-gifting-money-to-a-married-daughter-13431219.html
Dear All,
One important announcement
For all of those who have filed Income Tax return and have received an e-mail stating that there has been an error in calculating your tax and a refund has to be issued, please ignore it.
It is circulated by hackers. Once you click on the link it will direct you to a net banking login page and once you login into it, your bank account will be hacked.
Please ignore such emails. Income tax department will send an intimation about refunds/ payable through a proper notice.
PLEASE FOCUS 👇🏻
If you check the sender's address it would appear as donotreply@incometaxindiafilling.gov. in
(this id is of a hacker)
It should be, donotreply@incometaxindiaefiling.gov.in
*Note the "e" is missing from efiling & filing is spelt as filling.*
*space between "gov. & in" is created by me in order to not to work the fake link if anyone touch the link erroneously"*
*Please widely circulate this message so that nobody falls prey to hackers.*
In simple terms, you could owe no tax on capital gains due to indexation but still be liable for surcharge — a tax on tax. This is because the income tax utility considers your total gross income, including capital gains without indexation, for surcharge purposes.
That disconnect between what’s used for tax calculation and what’s used for surcharge is at the heart of the problem.
*_What experts say_*
Experts say part of the confusion stems from how the income tax utility software is programmed.
"The utility software is adding non-indexed capital gains to the total income for surcharge. That's how income tax utility coding has been done. Ideally, it should have been a corresponding gains calculation. If tax as per indexation calculation is to be considered, then indexed gains should have been considered," noted CA Pankaj Bhuta, founder of P.R. Bhuta & Co.
According to Bhuta, the Supreme Court has in the past pulled up authorities over such mismatches — yet the problem persists. “If the GTI (gross total income) increases beyond ₹50 lakh, then surcharge will continue to apply even in a case when there is no tax payable on LTCG. This may bring some absurd results and higher tax burden due to surcharge applicability."
This leaves taxpayers in an odd position, choosing indexation might lower capital gains tax, but it may still increase surcharge liability, especially if the gross income crosses ₹50 lakh or ₹1 crore.
*_The bottom line_*
The disconnect between how tax is computed and how surcharge is applied has created an unintended tax trap for property sellers, according to experts. Choosing indexation may save tax but still push gross income past surcharge thresholds, leading to a higher overall outflow.
Experts say a simple clarification or software correction could fix the issue. Until then, taxpayers using the new 12.5% LTCG option must tread carefully and consider not just the tax but also the surcharge.
⚠️ Missed the Sept 15 ITR deadline?
Don’t panic — you can still file a belated return till Dec 31, 2025 (Sec 139(4)).
But beware 👇
Late fee: ₹5,000 (capped at ₹1,000 if income < ₹5L).
No carry forward: Capital losses from stocks, MFs, property = gone.
Old Regime hit: Missed deductions & exemptions.
Filing late doesn’t just cost money, it costs opportunities.
⏳ File on time, protect your wealth.
#TaxPlanning #ITR #DontRetireRich
⏰ Advance Tax Alert!
Today (Sept 15) is the second instalment deadline for Advance Tax (FY 2025-26, AY 2026-27).
✅ Who needs to pay?
If your annual tax liability > ₹10,000.
Salaried (only if you earn rent, capital gains, side income).
Freelancers, consultants, business owners.
Exempt: Senior citizens with no business income.
✅ How much?
By Sept 15, you should have paid 45% of total tax.
Example: Tax liability ₹2 lakh → pay ₹90,000 cumulative (₹30k by June + ₹60k now).
❌ Missed it?
Interest @1% p.m. under Sec 234C applies till Dec.
Keep falling short → Sec 234B adds more @1% p.m.
#AdvanceTax #TaxPlanning #DontRetireRich
What if you fail to file ITR by due date September 15, 2025? You should be ready to pay late fee, delayed refund, and scrutiny
https://economictimes.indiatimes.com/wealth/tax/what-if-you-fail-to-file-itr-by-due-date-15-september-2025-you-should-be-ready-to-pay-late-fee-delayed-refund-and-scrutiny/articleshow/123843589.cms
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ATTN TAXPAYERS : AUTO SECTOR UPDATE
✅ As per CNBC sources, Centre mulls GST rate cuts on select vehicles:
🔹 Two-Wheelers (<350cc): 28% ➝ 18%
🔹 Small Cars (<1200cc): 29–31% (incl. cess) ➝ 18% flat
🔹 Hybrid Cars (≤4m, 1200cc petrol/1500cc diesel): 28% ➝ 18%
🔹 Luxury Cars/SUVs: ~40%
❌GoM on GST rates to examine proposal.
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Income-Tax Bill, 2025
🚨 Big Tax Reform Alert – Income-Tax Bill, 2025 Passed in Lok Sabha 🚨
Today marks a historic moment in India’s tax landscape. After 64 years, the Income-tax Act, 1961 is set to be replaced by the Income-Tax Bill, 2025 – a cleaner, simpler, and more digital-first framework.
Here’s the core of what changed:
🔹 Structure & Simplicity
- Sections cut from 800+ to 536, organized into 23 chapters & 16 schedules.
- Jargon replaced with plain language, tables & formulas.
- “Previous Year” & “Assessment Year” replaced by a single term – Tax Year.
🔹 Reliefs & Safeguards
- ₹12 lakh basic exemption retained.
- Faceless, digital assessments to curb harassment & speed up processes.
- Easier refund claims even after deadlines.
🔹 Retirement & Pension
- Unified Pension Scheme (UPS) tax treatment aligned with NPS.
- Full exemption for commuted lump-sum pension from specified funds like LIC.
💡 What it means for you:
👩💼 Salaried Employees
- Clearer tax rules, easier filing, less jargon.
- Digital, faceless assessments = less compliance stress.
- Higher exemption limit benefits middle-income earners.
👨💻 Self-Employed & Professionals
- Simplified structure reduces interpretation disputes.
- Refund flexibility aids cash flow planning.
- Digital assessments save time & reduce travel to tax offices.
👴 Pensioners & Retirees
- Relief on commuted pensions = higher post-retirement income.
- Clarity for UPS withdrawals prevents unexpected tax shocks.
🏢 Businesses & Start-ups
- Less cluttered tax law → fewer disputes, faster resolution.
- Digital-first approach aligns with compliance tech adoption.
- Clearer definitions improve planning & forecasting.
📌 The bigger picture:
This is more than just a tax bill—it’s a shift towards trust-based, technology-driven tax administration. For individuals, it means more clarity; for businesses, less red tape; and for retirees, better financial security.
The challenge? Execution. Digital systems must be robust, and taxpayers will need time to adapt. But if implemented well, this could be the most investor- and citizen-friendly tax reform in decades.
💬 What’s your take?
Do you think the new Income-Tax Bill strikes the right balance between simplicity and fairness?
EXCELLENT VERY DETAILED ARTICLE ON CAPITAL GAINS ON EQUITIES
Читать полностью…
Did you know...
*Just 0.1% of the Companies pay 53% of the Corporate Income Tax.*
Let's increase that a little bit and scrap it for the others! (TOI)
*Selling property? The 12.5% tax may push you into a higher surcharge bracket*
A change introduced by the government in 2024 to ease capital gains tax on real estate has inadvertently created a tax trap that could leave many individuals paying more than expected.
The government had allowed taxpayers to choose between a lower 12.5% tax rate on long-term capital gains (LTCG) without indexation or a 20% rate with indexation from property sales.
This applies to properties sold on or after 23 July 2024. The concession doesn’t extend to surcharge and cess calculations, leading to a higher overall tax burden. This article explains the changes in LTCG on real estate and what can be done to ease the tax burden.
*_Grandfathering benefit doesn’t extend to surcharge_*
The Finance Bill 2024 introduced the optional lower tax rate with retrospective effect for individuals selling land or buildings. “The Finance Bill 2024 changed the tax rate on long term capital assets, being land or building for Individual and HUFs, from 20% to 12.5%. This change was brought with retrospective effect from properties which are sold on or after 23 July 2024," said CA Kinjal Bhuta, treasurer, Bombay Chartered Accountants Society.
To protect older buyers, the government introduced a "grandfathering" clause, allowing those who purchased property before the cut-off to choose whichever option — 20% with indexation or 12.5% without — results in lower tax liability. However, this relief doesn’t apply when calculating surcharge, which is based on total income, not the taxable income after indexation.
This subtle but crucial detail is where taxpayers are getting caught unaware, experts say. “Your capital gains from real estate get added to your total income, and that can push you into a higher surcharge bracket. This means, even if your salary is just ₹20 lakh, if your unindexed capital gains push your total income above ₹50 lakhs, surcharge will still kick in," said CA Gautam Nayak, partner at CNK & Associates LLP.
*_How surcharge works_*
Surcharge is an additional tax charged on the income tax payable when an individual’s total income exceeds certain thresholds. The surcharge rate varies based on income slabs. If your total income falls between ₹50 lakh and ₹1 crore, a 10% surcharge is applied on the income tax. This increases to 15% for income between ₹1 crore and ₹2 crore, and 25% for income between ₹2 crore and ₹5 crore.
There are certain cases where the surcharge is limited to 15%. This includes income from dividends, short-term capital gains under Section 111A (like gains from listed shares or mutual funds with STT), and long-term capital gains under Sections 112 and 112A (such as profits from selling real estate, unlisted shares, or listed shares where STT is paid and gains exceed ₹1 lakh). The 15% surcharge cap also applies to income earned by foreign portfolio investors under Section 115AD(1)(b).
For associations of persons (AOPs)—entities formed by individuals or groups for a common purpose but not registered as companies—the surcharge is also capped at 15%. This ensures that AOPs are not burdened with excessive tax rates, even when their total income is high. Under the Income Tax Act, AOPs are treated as separate taxable entities.
*_Where it hurts, an example_*
Suppose you bought a property for ₹1 crore and sold it for ₹2 crore. Without indexation, your capital gain is ₹1 crore. With indexation, your cost rises to ₹1.5 crore, reducing the gain to ₹50 lakh. Add a ₹50 lakh salary, and your taxable income is ₹1 crore. But for surcharge purposes, income is treated as ₹1.5 crore — pushing you into the 15% surcharge slab instead of 10%.
“The choice to calculate capital gains with or without indexation is available solely for the limited objective of computing capital gains tax under Section 112. However, when it comes to determining total income, capital gains calculated without indexation are taken into account in the absence of similar relief", according to Ashish Karundia, chartered accountant and founder, Ashish Karundia & Co.
