Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act?
The Union budget 2019 was presented on Feb 1, 2019. There were some tax sops offered to the middle class. A new pension scheme for the workers in the unorganized sector was launched. There was an announcement of guaranteed basic income for certain section of farmers. So, something for everyone. Here are the highlights. 1. Income tax … [Read more...] about Budget 2019: Key Highlights
The Government of India has brought about a few important changes to NPS (National Pension Scheme). All the changes are beneficial for the NPS investors. Some of the changes are only for the Central Government Employees while the others apply to all the NPS subscribers. Let’s go through the changes in detail. Change # 1 (Taxation of NPS Maturity proceeds) This change … [Read more...] about Good News: Lumpsum withdrawal from NPS is now exempt from tax
Investing in Government Securities has become simpler. The Reserve Bank of India had notified, in November 2017, that stock exchanges can act as aggregators for retail investor and thus facilitate bidding for Government securities at RBI auctions. Discount broker Zerodha and NSE came out with the online facility to purchase Government bonds recently (late 2018). In this post, … [Read more...] about You can now invest online in Government Bonds easily. Should you?
What is GSTR 3B return? Let’s start with a basic understanding about GSTR-3B Return from the following table listed below: GSTR 3B return is a temporary monthly GST return. It was envisaged to be filed from July 2017 till March 2018. However, GSTR 3B has been continued to date. Under GST, every registered dealer needs to file the three returns in a month Return … [Read more...] about All you need to know about GSTR-3B return filing
In an earlier post, I discussed how NRIs can invest in mutual funds and the challenges they face while investing in India. In this post, let’s look at mutual fund taxation for NRIs (non-residents). NRI Mutual Fund Taxation: How is it different from residents? There are a few minor differences. #1 Long-Term Capital Gains Tax on Debt Funds For … [Read more...] about NRI Mutual Fund Taxation: How NRI Mutual Fund Investments are taxed?
In this post, I will discuss tax benefits for NPS and the tax treatment of maturity proceeds. I will discuss if it makes sense to invest in NPS now or if you should invest in NPS for the exclusive benefit of Rs 50,000 under Section 80CCD(1B). NPS Tax Benefits (Latest) This part has not been affected by the latest budget. Only contribution to Tier-I NPS account is eligible for … [Read more...] about NPS Tax Benefits and Tax Treatment at Maturity (Latest)
Introduction on tax on the long-term capital gain (LTCG) on the sale of equity funds/shares is a clear pain point for the equity investors. If you rebalance your portfolio at regular intervals (which you should) or have been planning to switch your regular plan investments to direct plan, you will have to incur some cost now. Earlier (before the introduction of the tax on … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
In this post, I will answer a few queries that investors may have while exiting NPS (National Pension Scheme). There could be three types of exits from NPS: Normal exit (At the age of 60 in case of All Citizens Model, At the time of superannuation in case of Government NPS and Corporate Sector NPS) Pre-mature exit (before the age of 60 or superannuation as … [Read more...] about FAQs: Lumpsum Withdrawal and Annuity Purchase at the time of exit from NPS
If you keep a sizeable amount of money in savings bank accounts or bank fixed deposits, you must know about tax relief on interest income under Section 80TTA and 80TTB. Let’s find out about the tax relief under Section 80TTA and Section 80TTB. #1 Section 80 TTA (Interest Income on Savings Bank Accounts) Interest earned on savings accounts is exempt from income tax to the … [Read more...] about Section 80TTA and Section 80TTB: Saving tax on interest income