Overview LTCG tax on equity Long-term capital gains tax on equity has had three lives in India: abolished in 2004, brought back in 2018 at 10%, and raised in Budget 2024 to 12.5%. Part 1 The current rules, without the fog Equity shares and equity mutual funds held for more than 12 months are long-term. […]
Overview SGB tax rules Gold is up roughly 70% since early 2024, and the government has not sold a single new Sovereign Gold Bond since February 2024. Part 1 The interest: always taxable This part did not change. SGBs pay 2.5% a year on the issue price, in two half-yearly credits. That interest is income […]
Overview Tax saving beyond 80C Every January, the same ritual plays out in every office in India. Part 1 First, the regime question Most of the deductions in this article, 80C included, exist only in the old regime. Part 2 The one deduction that survives the new regime Section 80CCD(2), the employer’s NPS contribution, is […]
Overview Tax loss harvesting Since Budget 2024, the taxman takes 20% of your short-term equity gains and 12.5% of your long-term gains above Rs 1.25 lakh a year. Part 1 The idea in one paragraph Tax-loss harvesting is selling a losing investment to convert a paper loss into a realised capital loss. That realised loss […]