- Capital gains tax is levied on profits from the sale of capital assets like stocks, bonds, real estate, etc that are held for a certain period of time.
- In India, assets held for over 3 years incur long-term capital gains taxed at 20% while assets held for less than 3 years face short-term capital gains taxed at 15%.
- The US and China also differentiate between long-term and short-term capital gains but have varying tax rates and holding periods for different asset classes.
- Most countries provide some relief for long-term capital gains to encourage longer-term investing and account for inflation.
This webinar talks about Section 80(C) and its basics, comparison of instruments within this option and how to derive the maximum value out of it, How to choose the best ELSS Mutual Funds - one of the most popular Section 80(C) investments.
The financial year is coming to an end and so you must determine where to invest so as to get optimum return and tax benefits. Even though the primary objective is to save taxes you also want that your investments earn good returns. This article is an attempt to analyze the various tax saving investments available and the annual returns that it earns.
Corporate Tax Planning Practicing ProblemsSundar B N
In this file you will find problems with solution for Corporate Tax Planning
Subscribe to Vision Academy for Video assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This webinar talks about Section 80(C) and its basics, comparison of instruments within this option and how to derive the maximum value out of it, How to choose the best ELSS Mutual Funds - one of the most popular Section 80(C) investments.
The financial year is coming to an end and so you must determine where to invest so as to get optimum return and tax benefits. Even though the primary objective is to save taxes you also want that your investments earn good returns. This article is an attempt to analyze the various tax saving investments available and the annual returns that it earns.
Corporate Tax Planning Practicing ProblemsSundar B N
In this file you will find problems with solution for Corporate Tax Planning
Subscribe to Vision Academy for Video assistance https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Presenting this set of slides with name - Financial Instruments Powerpoint Presentation Slides. Our topic specific Financial Instruments Powerpoint Presentation Slides presentation deck contains thirtyfour slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan.
Section 80D provides taxpayers with tax deductions on the premium paid towards health insurance policies for self, parents, spouse, and children. The taxpayers are can claim the following amounts as deductions under Section 80D: i) Up to Rs 25,000 on the premium for health insurance availed for self, spouse, and children. ii) If your parents are covered under the insurance policy, then a maximum deduction of Rs 50,000 is allowed. iii) If either of your parents is a senior citizen, then the maximum deduction allowed is Rs 75,000.
Now, let’s see how Akash can utilise the provisions of Section 80D to save taxes. He buys a health policy for himself by paying a premium of Rs 20,000. He later decides to cover his parents as well under the policy. He spends an additional Rs 53,000 to do so. Akash’s father is aged 61 years. Hence, he can avail an additional deduction of up to Rs 50,000 towards the premium paid to cover his father. Thus, Akash can claim Rs 70,000 paid by him (Rs 20,000 for covering self and Rs 50,000 for covering parents, one of whom is a senior citizen) under Section 80D this year. He saves Rs 21,840 in taxes under this Section.
Helps the student to know about the Agricultural Income in Indian Income tax Act 1961 and also how the Tax Liability will be calculated when an Assessee have both Agricultural and Non Agricultural Income
Tax Havens , Major Tax Havens around the world.JASEEM LAL
What is a Tax Haven
OECD Criteria for a Tax Haven
Characteristics of a Tax Haven
Uses of a Tax Haven
Legal entities in a Tax Haven
Major Tax Havens around the world
Types of Tax Havens
Examples: Types of Tax Havens
# Cayman Islands
Effects of Tax Havens
Four Reasons Of Tax Havens Are Good
The response of Governments
OECD objectives
Is there a future for Tax Havens
taxes are income of government. india is a developing country, therefore taxes is important source of income to indian government. the majority of taxes which are mostly collected by the government is included in this presentation.
A COMPARATIVE STUDY OF CAPITAL GAIN TAX ON EQUITY OF INDIA WITH RESPECT TO OT...MOHAMMED ILYAS K
In the present paper an attempt has been made to study the capital gain taxation structure of India by comparing it with some of the developed and developing countries and impact of new LTCG tax on the Indian stock market. The Comparison is done by selecting a sample of five countries and comparing the tax structures of India with respect to the parameters like STCG tax rate, LTCG tax rate and holding period for LTCG. It was found that all the selected countries have some form of capital gains taxation, the manner of taxation and the level of capital gains taxation in those countries differ greatly
Presenting this set of slides with name - Financial Instruments Powerpoint Presentation Slides. Our topic specific Financial Instruments Powerpoint Presentation Slides presentation deck contains thirtyfour slides to formulate the topic with a sound understanding. This PPT deck is what you can bank upon. With diverse and professional slides at your side, worry the least for a powerpack presentation. A range of editable and ready to use slides with all sorts of relevant charts and graphs, overviews, topics subtopics templates, and analysis templates makes it all the more worth. This deck displays creative and professional looking slides of all sorts. Whether you are a member of an assigned team or a designated official on the look out for impacting slides, it caters to every professional field.
Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan.
Section 80D provides taxpayers with tax deductions on the premium paid towards health insurance policies for self, parents, spouse, and children. The taxpayers are can claim the following amounts as deductions under Section 80D: i) Up to Rs 25,000 on the premium for health insurance availed for self, spouse, and children. ii) If your parents are covered under the insurance policy, then a maximum deduction of Rs 50,000 is allowed. iii) If either of your parents is a senior citizen, then the maximum deduction allowed is Rs 75,000.
Now, let’s see how Akash can utilise the provisions of Section 80D to save taxes. He buys a health policy for himself by paying a premium of Rs 20,000. He later decides to cover his parents as well under the policy. He spends an additional Rs 53,000 to do so. Akash’s father is aged 61 years. Hence, he can avail an additional deduction of up to Rs 50,000 towards the premium paid to cover his father. Thus, Akash can claim Rs 70,000 paid by him (Rs 20,000 for covering self and Rs 50,000 for covering parents, one of whom is a senior citizen) under Section 80D this year. He saves Rs 21,840 in taxes under this Section.
Helps the student to know about the Agricultural Income in Indian Income tax Act 1961 and also how the Tax Liability will be calculated when an Assessee have both Agricultural and Non Agricultural Income
Tax Havens , Major Tax Havens around the world.JASEEM LAL
What is a Tax Haven
OECD Criteria for a Tax Haven
Characteristics of a Tax Haven
Uses of a Tax Haven
Legal entities in a Tax Haven
Major Tax Havens around the world
Types of Tax Havens
Examples: Types of Tax Havens
# Cayman Islands
Effects of Tax Havens
Four Reasons Of Tax Havens Are Good
The response of Governments
OECD objectives
Is there a future for Tax Havens
taxes are income of government. india is a developing country, therefore taxes is important source of income to indian government. the majority of taxes which are mostly collected by the government is included in this presentation.
A COMPARATIVE STUDY OF CAPITAL GAIN TAX ON EQUITY OF INDIA WITH RESPECT TO OT...MOHAMMED ILYAS K
In the present paper an attempt has been made to study the capital gain taxation structure of India by comparing it with some of the developed and developing countries and impact of new LTCG tax on the Indian stock market. The Comparison is done by selecting a sample of five countries and comparing the tax structures of India with respect to the parameters like STCG tax rate, LTCG tax rate and holding period for LTCG. It was found that all the selected countries have some form of capital gains taxation, the manner of taxation and the level of capital gains taxation in those countries differ greatly
Calculate LTCG & STCG Tax on Property in India for Capital Gains.pdfyamunaNMH
Calculate LTCG & STCG Tax on Property- Any profit or gain that results from the sale of a “capital asset” is referred to as a capital gain. Real estate, stock, mutual funds, jewellery, trademarks, and other investments. are considered capital assets. Since the gain or profit is viewed as “income,” you must pay taxes on that particular amount in the same year that the capital asset was transferred.
Real Estate Direct Tax- Learn More About Current Tax Rates & Tax-Saving Strat...yamunaNMH
The term “direct tax” describes taxes that the government imposes directly on people or other entities. For instance, GST is an indirect tax, whereas income tax is a direct tax. A notable illustration in the real estate industry is the capital gains tax, which is levied on property sales. Discover its meaning, benefits, and different forms of direct taxes in India by reading on.
Impact of Modi Budget 2014 on Specific Sectors...
Dear Friends,
It gives us a pleasure to present the summary of India Budget Synthesis 2014.
While you may already have the snapshot, here is a document which will not only give you crisp highlights, but would also decode the impact of Budget 2014 on You, Your Company and Your Sector.
Hope you find this analysis useful in taking clearer business decisions and align your company's strategy with the overall economic climate in the balance part of financial year 2014-15.
Would love to hear your feedback on the usefulness of the same."
Regards,
Vishal Thakkar | Group Head - Corporate Relations | Synthesis Group
Hand Phone: 91 9320007891 | Boardline: 91 22 24093737 | Fax: 91 22 24093737
The Finance Act 2015 - How does it affect your clients? By CBW TaxRobert Maas
How will the many significant changes in the Finance Act 2015 affect your clients?
Let us share with you our thoughts on all of the main changes in the Finance Act.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Falcon Invoice Discounting: Optimizing Returns with Minimal Risk
Taxes on investment
1.
2. Capital Gain Tax
• Capital gains are the profits that an investor realizes
when he or she sells the capital asset for a price
that is higher than the purchase price.
• Capital gains taxes are only triggered when an asset
is realized, not while it is held by an investor.
• An investor can own shares that appreciate every
year, but the investor does not incur a capital gains
tax on the shares until they are sold.
3. Capital Assets
• Assets which are liable for capital gain taxes:
Equity shares
Bonds
Gold
Real Estate
Paintings and Drawings
Jewellery
Archaeological Collections
Sculptures
5. Long term capital gains (India)
A long-term capital gain arises when you hold any asset for a
defined period ranging from 1 year to 3 years.
6. Indexation
• Indexation is the art of removing the impact of inflation from the
profits and taxing the balance profits.
• The indexation figure is released by the Govt. every year and
based on these indexation figures, the impact of inflation on
the profits is removed.
• To reduce the impact of inflation on your investment,
indexation benefit is provided in calculating long-term capital
gains. Through this benefit you can adjust your capital gains
from inflation by applying an appropriate factor from cost
inflation index to the original units
7.
8. Equity or Equity MF
• Equity Mutual Funds are those funds where equity holding is
more than 65% of the total portfolio so even balanced funds
will be categorized in Equity Funds.
• Long Term Capital gain on Equity Mutual Funds – if you buy &
hold an equity Mutual Fund for more than 1 year, there will be
No Tax levied.
• E.g: If you invest Rs1 lakh in XYZ Fund & after 1 year, its value
is Rs1.3 Lakh – there will be zero tax on capital appreciation of
Rs30000. This is a very big advantage of equity mutual funds.
9. Debt or Debt MF
A debt fund is one which invest in short-term or
long-term bonds, securitized products, money
market instruments or floating rate debt..
Tax on Long Term Capital gain on Debt Mutual
Funds – here taxation depends on whether investor
would like to use indexation or not.
10. Example
• Suppose, Bonds worth Rs 35,00,000 were
purchased in April 2007
• Selling price on April 2011 = Rs 50,00,000
• Long term capital gain: 50lakh- 35lakh= 15lakh
• Tax = 10% of 15 lakh = 1.5 lakh
• Education Cess = 3% of 1.5 lakh= Rs.4500
• Total tax payable= 1,54,500
11. Indexation benefits calculation
• Suppose, Bonds worth Rs 35,00,000 were purchased in April
2007
• Selling price on April 2011 = Rs 50,00,000
• Inflation Index:
» 2007-2008 = 551
» 2011-2012 = 785
• Indexed Purchase Cost- 35,00,000 x 785/551= Rs 49,86,388
• Long Term Capital Gains= 50,00,000-49,86,388 = Rs 13612*
• Tax on LTCG= 13612 x 20%= Rs 2722
• Education Cess= 2722 x 3% = Rs 82
• Total Tax on LTCG = Rs 2804
• Thus, the indexation benefit reduces the tax liability substantially
which otherwise would have been a huge payout for any investor.
12. Short term capital gain (India)
Investment in any asset class, if held for a very short period, is taxed as
short-term capital gains
13. Equity Example
This is how short-term capital gains are calculated:
• Cost of Equity units bought in 2011 - Rs 100,000
• Price of same units sold after 6 months - Rs
120,000
• Short Term Capital Gains - Rs 20,000
• Tax Applicable - 20,000 x 15%= Rs 3000
• Education Cess - 3000 x 3%=Rs 90
• Total Tax payable = Rs 3090
14. Debt Example
• Bonds worth Rs. 10 lakh were purchased and sold
at Rs.12lakh in the same year.
• Short term capital gain is Rs. 2lakh
• Investors income form other sources is Rs.1 lakh
• Total income for the year= 3 lakh
• Tax up to 2lakh is nil.
• And on rest 10% as per income tax slab.
15. Mutual Fund Dividend Taxation
Again this taxation will depend on which type of Mutual Fund
you are investing in – Equity or Debt
There is no dividend distribution tax on equity mutual funds &
also the dividend received by investors is tax free. So, again a
bonus for equity mutual fund investors.
Even in case of Debt Mutual Funds – dividends received by
investor are tax free in their hand or they don’t need to show it
as a taxable income. But there is dividend distribution tax paid
by mutual funds to income tax department
16. Dividend Distribution Tax on Debt Mutual Funds
This taxation further depends on type of Debt Funds:
Dividend Distribution Tax on Liquid/Money Market Schemes -
Liquid/Money Market Schemes means Debt oriented funds
which invest in money market instruments or in securities that
have maturity of less than 90 days. Here 27.038 %tax (25%
Tax + 5% Surcharge + 3%Cess) will be deducted from the
dividends.
Dividend Distribution Tax on Debt Funds other than
Liquid/Money Market Schemes – Here 13.519 % tax (12.5%
Tax + 5% Surcharge + 3%Cess) will be deducted from the
dividends.
18. Securities Transaction Tax
• All persons do not declare capital gains. Hence
government charges STT which is unavoidable.
• It is payable on value of all securities transacted
through a recognized stock exchange.
• It is to be paid by the seller of a futures contract on
the date of delivery on the value of the contact.
• An option seller pays STT on the premium and if the
option is exercised then the buyer has to pay STT
on the option value i.e. ST*No. of options.
• STT on cash segment is more than F&O segment.
19. Examples
• Suppose you buy 100 shares of SBI @ Rs. 1700 per
share.
• Then you will have to pay 0.1% on this transaction
as STT and brokerage @ 0.5%.
• Now suppose that you sell this share @ Rs. 1800
per share after 2 months.
• Then you will have to pay 0.1% on this transaction
as STT and brokerage @ 0.5%.
• Since the period under which capital gains to be
computed is less than a year, you will have to pay
short term capital gains tax @15% and 3%
education cess..
20. Examples
• Suppose you buy 100 shares of Financial
Technologies @ Rs. 400 per share.
• Then you will have to pay brokerage @ 0.1%.
• Now suppose that you sell this share @ Rs. 500 per
share intraday.
• Then you will have to pay 0.025% on this
transaction as STT and brokerage @ 0.1%.
• Since the income from intraday transactions is
treated as speculative income, you will have to add
this to your total income and pay the maximum tax
as per your tax slabs.
21. Examples
• Suppose you go long on a futures contract then you
don’t have to pay STT.
• If you go short on a futures contract then you have
to pay STT @ 0.01%.
• In case of options if you buy a call/put option and it
is exercised on or before the expiration date then
you have to have to pay STT @ 0.125% of the
settlement price i.e. ST*no. of options.
• If you sell call/put option then you have to pay STT
@ 0.017% on the premium.
• In case of MF you have to pay STT @0.001% on
the redemption i.e. NAV*no. of units
22. Corporate Tax
• It is paid on the income by a company operating in
India.
• For domestic companies having income less than
INR 10 million, it is 30%+Education Cess.
• For domestic companies having income more than
INR 10 million, it is 30%+Surcharge+Education
Cess.
• For foreign companies having income less than INR
10 million, it is 40%+Education Cess.
• For foreign companies having income more than
INR 10 million, it is 40%+Surcharge+Education
Cess.
23. In case of Capital loss
• In case a loss arises on the sale of an asset
Then the capital loss can be set-off against other
capital Gains in that year.
• If the loss cannot be set-off against capital gain
in that year
then it can be carried forward for the next 8 years and
set-off in the future years if the return was filled before
the due date.
25. Wealth tax
• It is basically the difference between the total worth
of the taxable assets and the aggregate debts that
have been incurred on those assets.
• This calculation does not take into account the
exempted assets and is always done on the basis of
a valuation date.
26. Wealth Tax Assets
• The following are regarded as assets that can be subjected
to wealth taxes as per Section 2(a) of Wealth Tax Act:
• Commercial buildings and the nearby land
• Jewellery, furniture, bullion, utensils, and other articles that
are either totally or partly made of gold, platinum, silver or
any other metal or an alloy of these metals. Ones owned as
stock-in-trade will be exempted from this tax
• Residential buildings and the nearby land
• Guest houses and the nearby land
• Urban land – (a) an area that is located within a local
authority’s jurisdiction and has at least 10,000 people as per
the last census completed before the valuation date. (b) an
area within 8 kms of a local authority like the Central
Government
• A farm house located within 25 kms of the local limits of a
Cantonment Board and municipality
27. Computation of Wealth Tax
• Wealth tax is normally levied on the basis of the
net wealth of the assessee, which could be an
individual, a company or a Hindu Undivided Family.
• At present the rate is 1 percent of the amount that
is in excess of INR 15 lakhs. The calculation is
done on the basis of a valuation date, which is
normally March 31 of the immediately previous
assessment year.
28. Example
• Suppose Mr. Chintamani has the following assets :
• Gold Jewellery : INR 6,500,000
• Residential building : INR 20,000,000
• Commercial building: INR 35,000,000
• Farm house: INR 40,000,000
• Total Wealth Asset: INR 101,500,000
• Taxable amount: INR 100,000,000
• Wealth Tax = 1% of INR 100,000,000
= INR 1,000,000
31. Long Term capital gain
Capital asset India USA China
Equity 0% 0%, 15%, 20% 20%
Debt 20% with
indexation
0%, 15%, 20% 20%
Collectables 20% with
indexation
28% 20%
Dividend 0% 30% 10%
Real estate 20% 5% or 15%
depending upon
the income level
20%
32. Short Term Capital gains
Capital asset India USA China
Equity 15% Ordinary tax rates 20%
Debt Added to income Ordinary tax rates 20%
Collectables Added to income Ordinary tax rates 20%