Finance Buddy

Weddings in India witness a lot of gold gifting. Apart from gold being gifted by parents, other relatives and in-laws shower the bride with gold. The question is: How is the gift of gold taxed. Tax lens Usually, any money or property received by anyone without any consideration is taxed and needs to be filled as “income from other sources” in the income tax returns. But the good news is that all the gold received during marriage is tax free . “Any gift received during marriage is tax free and so the gold received by a bride in marriage is not taxed. Further, there is no restriction on gold being received during marriage,” says Sujit Bangar, Founder, Taxbuddy.com. This could be in the form of ornaments, articles, utensils, set in furniture etc. Streedhan received by a lady on the occasion of marriage is not subject to tax, as per Section 56(2)(x) of the Income Tax Act . Gold offered by any relative, distant or even friends, during marriage isn’t taxed in the hands of the bride or the g...

Sujit Bangar, Founder,  taxbuddy.com,   presents a more elaborate approach. Bangar shares, “Firstly, most of the taxpayers are favouring old tax rate regime. The two tax regimes are creating confusion in the minds of return-filing taxpayers. It shall be better if we keep a single tax rate regime instead of two." Adding how healthcare costs are eating into the common man’s savings, Bangar voices in favour of increasing the deduction limit available in   health insurance   schemes. He adds, “The deduction available under Section 80D may be enhanced to   ₹ 75000 from existing   ₹ 25,000 to promote health insurance given rising health care costs." Explaining the need to include separate deductions towards the money spent on children’s education, Bangar explained, “Deduction against school fees may be de-coupled from Section 80C and separate deduction may be offered for this purpose. It shall further boost the spending on school education. Fees other than tui...

  New Delhi  – Taxbuddy, India’s foremost tax filing platform and a trusted authority in tax education , is delighted to announce the imminent launch of its third batch of the highly successful Learn & Earn Program, scheduled to commence on Feb 2, 2024. Building on the achievements of the previous two batches, Taxbuddy remains committed to fostering skilled tax professionals through a comprehensive 4-month Income Tax Course . Course Overview: The Learn & Earn Program stands out for its comprehensive curriculum, seamlessly blending theoretical knowledge with practical applications. Conducted through Zoom on alternate days, the program offers flexibility without compromising on the quality of interaction and engagement. Key Features: Duration : A 4-month intensive course designed to cover a spectrum of income tax topics. Content : From foundational principles to advanced strategies, participants will master ITR 1, 2,3 & 4 using the utility. Special empha...

Taking the road less travelled is a saying that one normally associates with travel to distant places. However, interestingly, this saying can also have a financial perspective – and for taxes. We are all familiar with the high profile   tax savings   methods like   tax saving bonds ,   ELSS , etc. But what about lesser famous options to save the pennies in your pocket? “Investing (in tax savings options) is only one part of sound tax management. However, the important part that doesn’t receive due attention is how you manage your spending," says Sujit Bangar, Founder  Taxbuddy . Income tax laws allow for several deductions from your taxable income for certain expenditures that you make. An example is the payment of children’s tuition fees,   health insurance   premiums, repayment of   home loans ,   education loans , and house rent are expenses that qualify for a tax deduction. “Unfortunately, many taxpayers are not aware or don’t put in t...

If you've made money in the recent stock market rally, understanding how your stock market income is taxed is crucial. Here's an explainer on the income tax rules for stock market investors: 1. Types of income:  Income from the sale and purchase of shares falls under either business income or capital gain . 2. Holding period matters:  Tax and investment experts highlight that the holding period determines the nature of income. If stocks are held for more than 12 months, it falls under long-term capital gain; if the holding period is less than or equal to 12 months, it is considered short-term capital gain. 3. Business income or capital gain:  Sujit Bangar from  Taxbuddy.com  emphasizes that if stocks are sold under line delivery, it's non-speculative and can be taxed as normal business income or capital gain. Trading in futures and options is also considered non-speculative business income. 4. Taxation rates:  Business income is taxed at regular slab rate...

Income tax calculator:   An income made on sale and purchase of shares fall under the business income or capital gain head. So, those who made money in recent stock market rally need to know how their income from stock market will be taxed. According to tax and investment experts, income from stock market is calculated on the basis of holding period. If the investor has hold the stock for more than 12 months, then the income will fall under long term capital gain category. However, if the holding period is less than or equal to 12 months, then the stock market income would be called short term capital gain Income tax rules for stock market investors Speaking on how income tax applies on stock market gains, Suji t Bangar , Founder at Taxbuddy.com said, "Income earned from stock market is taxed either as business income or capital gain. If stocks are sold with under line delivery, it’s non speculative. This type of transaction can be taxed as normal business income or capital gai...

  Ashok Jamwadikar invested Rs 45,000 in SBI Infrastructure Fund – Regular Plan – Growth on July 6, 2007. He purchased 4500 units of the fund at Rs 10 each. The NAV of the fund has increased to Rs 35.3075 as of 30 September 2023 and the total value of Ashok’s investment has reached Rs 158,884. In an email sent to FE Money, Ashok asked whether he would be liable to pay LTCG tax if he redeems his investment. Further, he wanted to know how much LTCG tax he would have to pay and whether he could redeem the units partly or not. In India, LTCG tax is applicable to investments in equity-oriented mutual funds, including the one mentioned in the above query. However, the tax implications depend on the holding period and the amount of gains. As the holding period in the above case is more than 1 year, it will be considered as LTCG. The important fact here is the inclusion of “Grandfathering Provisions” at the time of calculating Tax. In the context of equity-oriented mutual...