ELSS tax benefits are available for both Indian residents and NRIs

This article was first published on livemint. Are there any tax-saving advantages in NRI mutual funds? Equity-linked saving schemes (ELSS) allow tax saving under Section 80C of the Indian Income Tax Act. An investment of up to ₹1.50 lakh in ELSS can be claimed as a deduction from taxable income in India. These tax-saving benefits are …

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What is Grandfathering in mutual funds LTCG Tax?

The finance ministry, in its budget announcement on Feb 1st, re-introduced the tax on Long-Term Capital Gains (LTCG) at 10% without indexation benefits. This is applicable for gains above Rs 1,00,000. This new law is applicable from 1st April 2018. So does that mean all the gains made up till now should be taxed? No. …

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5 common mistakes people make while filing income tax returns

Filing income tax returns has become relatively easier now, however, people often make some mistakes that lead to defective returns or problems later at the time of claiming tax refund. Following are 5 common mistakes you must guard against while filing your income tax returns online: 1. Failing to mention all income sources It’s important for …

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How to Calculate Indexation on Sale of Assets

How to Calculate Indexation Indexation basically means consideration of time value of money while calculating your profits. While we sell an asset, the purchase price of the asset needs to be adjusted according to the inflation rate using a standard index. This calculation process is termed as indexation. Indexation helps us achieve a fair and …

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How much Capital Gains Tax you need to pay on sale of Property

Capital Gains Tax This tax is to be paid on the sale proceeds, whenever you sell of your property or physical assets like gold and jewelry at a profit. Capital Gains is broadly divided into two parts namely Short-term Capital Gain (STCG) and Long-term Capital Gain (LTCG). Short-Term Capital Gains Short-Term Capital Gains are applicable …

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Demystified: How Mutual Funds are Taxed

Mutual funds returns are subject to 2 types of taxes — Dividend Distribution Tax (DDT) and Capital Gains Tax. Capital Gains Tax also come is Short-term and Long-term versions depending on the type of mutual funds and the investment holding period. DDT is a tax on distributed profits. This is paid by the mutual fund companies directly …

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