If we sell our residential house for, say, ₹50 lakh, do we have to invest the full 50 lakh to buy another residential house property, or do we only need to invest the long-term capital gains? I was under the impression that only the capital gains amount needed to be invested in another residential house…
Three sisters inherited one piece of land in 2003, but it was partitioned among the sisters in 2010. For the indexed cost of the purchase in the calculation of long-term capital gain, should we take the market value as of 2003 (date of inheritance) or the market value as of 2010 (date when the inherited…
Is long-term capital gain from the sale of jewellery taxable for an individual whose income is lower than the basic exemption limit? If yes, what is the rate of tax on such capital gains? Answer: Jewellery is treated as a capital asset, and any profit made from the sale of a capital asset is taxed…
I am 78. I sold a shop I purchased in 1999 for ₹2.40 Lakh and spent ₹1 lakh on better looks and convenience in 1998. I am planning to sell it for ₹18 lakh in August 2024. Can you advise me how much the capital gain will be?How can I save the tax? As the…
With the latest budget announcement and the directive from the previous year’s budget, debt mutual funds have become unattractive and have been relegated to the sidelines – a burgeoning segment almost thrown under the bus. This was also inferred when the Association of Mutual Funds of India put out six-point budget feedback on 30 July, requesting…
The latest budget has significantly altered the real estate landscape, with diverse impacts across various market segments. Long-term property investors face reduced returns due to the withdrawal of indexation benefits, while first-time homebuyers might benefit from more stable prices. Developers, particularly those in the affordable housing sector, may experience growth despite increased project costs. The…
His concern was not so much with income than wealth, and here too, he distinguished between inherited and earned wealth. He advocated a tax on the rich who had such ‘capital.’ Closer home, his work on inequality in India that came out earlier this year drew considerable umbrage, as critics tore into his data and…
The Budget has dealt a blow to property owners by removing the indexation benefit. Previously, sellers could adjust the purchase price of a property for inflation, which would significantly reduce capital gains tax. The silver lining, however, is that the long-term capital gain (LTCG) tax has been reduced to 12.5% from 20% earlier. But, those…
The withdrawal of indexation benefits on debt mutual funds, as outlined in the Union Budget for 2024-25, has left investors re-evaluating their strategies. The new policy, which affects funds purchased before 1 April 2023, imposes a flat 12.5% tax rate on gains without the previous indexation advantage. This change significantly increases tax liabilities compared to…
Budget 2024 removed the provision of indexation in the calculation of capital gain tax. A study tried to evaluate its impact on the quantum of taxes and discovered that the taxes, on average, would increase considerably. This study simulated tax calculations for 10 major cities and found out that LTCG taxes on average increase 2.9 times without…
