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IPL Auction 2025:  The IPL is widely regarded as the most lucrative domestic T20 cricket league in the world, attracting top talent with whopping salaries. With significant sponsorships and broadcast deals, IPL franchises spare no expense in securing the services of top players. Two days back, Rishabh Pant made history by becoming the most expensive purchase in IPL history, signing with Lucknow Super Giants for a record fee of Rs 27 crore in the mega auction. Similarly, Australian fast bowler Mitchell Starc fetched a hefty sum during the IPL 2025 auction in Jeddah, Saudi Arabia. Starc was acquired by Delhi Capitals (DC) for an impressive Rs 11.75 crore. It is worth mentioning that Starc previously made headlines in the IPL 2024 auction when he became the highest-priced player ever sold, going to Kolkata Knight Riders (KKR) for Rs 24.75 crore. How are players taxed on their IPL salaries? Taxation of Indian and foreign players in India, particularly in events such as the IPL (Indian...

Union Minister Ashwini Vaishnav on Monday announced the PAN 2.0 project which is set to modernise the Permanent Account Number (PAN) system. PAN 2.0 is introducing a QR code to streamline tax compliance and improve data security for taxpayers. Taxpayers should know that the updated PAN card is optional and free of cost, however, it is important to know its necessity and implications for existing PAN cardholders. What is PAN 2.0? With PAN 2.0 the government aims to simplify and unify business and individual taxpayer identification and make PAN a Common Business identifier. This upgrade integrates PAN with other identifiers like TAN and TIN, providing a seamless, single-point solution for compliance and financial transactions. Says CA Ashish Niraj, Partner, A S N & Company, Chartered Accountants, “It will be a single source of truth and data consistency. For long there was a need for such a single identifier. Taxpayer registration will become more technologically advanced. Also, the...

Tax query : I am 28 years old and still unemployed. My mom gives me Rs 30,000 as pocket money every month. Will I have to pay taxes? I am going to file my ITR nevertheless but not sure if I have to pay any taxes on the money that is credited into my account. My mother is a working professional. Name withheld Reply by Sujit Sudhakar Bangar, Founder, TaxBuddy .com  In India, certain gifts are subject to taxation under specific circumstances. Understanding these rules is crucial to avoid unforeseen tax obligations. Familiarising yourself with when a gift is exempt from tax and when it is not can help prevent any surprises in the future. Generally, gifts exceeding Rs 50,000 are taxable, unless they are received from close family members like parents, siblings, or spouses. Section 56 of the Income Tax Act outlines which movable properties, including shares, bullion, jewelry, artworks, and virtual digital assets, are exempt from taxation in the case of weddings but taxable if received f...

Tax query : I am 28 years old and still unemployed. My mom gives me Rs 30,000 as pocket money every month. Will I have to pay taxes? I am going to file my ITR nevertheless but not sure if I have to pay any taxes on the money that is credited into my account. My mother is a working professional. Name withheld   How much tax do I have to pay? Calculate now Reply by Sujit Sudhakar Bangar, Founder, TaxBuddy .com  In India, certain gifts are subject to taxation under specific circumstances. Understanding these rules is crucial to avoid unforeseen tax obligations. Familiarising yourself with when a gift is exempt from tax and when it is not can help prevent any surprises in the future. Generally, gifts exceeding Rs 50,000 are taxable, unless they are received from close family members like parents, siblings, or spouses. Section 56 of the Income Tax Act outlines which movable properties, including shares, bullion, jewelry, artworks, and virtual digital assets, are exempt from taxatio...

For Non-Resident Indians (NRIs), managing finances between India and their country of residence can be complex. To simplify this, Indian banks offer two key types of accounts: the Non-Resident External (NRE) Account and the Non-Resident Ordinary (NRO) Account. These accounts help NRIs handle their earnings and investments in India, but understanding their differences is crucial for effective tax planning. What is an NRE Account? How much tax do I have to pay? Calculate now The NRE account is designed for NRIs to transfer and manage their foreign earnings in India.  Here are some key points: It allows funds to be maintained in Indian rupees, converted from foreign currencies. Secondly, Funds in an NRE account, including both the principal and interest, are fully repatriable. This means the money can be transferred back to the NRI's country of residence without restrictions.Thirdly, The interest earned on an NRE account is exempt from Indian income tax .  Fourthly, NRIs who want...