TAXATION
SGB at 15% higher price on stock exchanges: Why you must factor in the taxation while trading SGB in secondary market
Sovereign Gold Bond (SGB): The price of gold bonds have shot up on the National Stock Exchange (NSE). According to Aksha Kamboj, VP of India Bullion & Jewellers Association (IBJA), "SGBs are trading in the stock market at 7-8% premium in anticipation of fear of more SGB tranches not being announced by the Government."
Explained: What is the difference between a fixed deposit and a fixed maturity plan mutual fund?
Whether you choose Fixed Deposits (FDs) or Fixed Maturity Plans (FMPs) hinges on your risk tolerance, tax situation, and investment timeframe. FDs are ideal if you prioritize safety and assured returns. If you're comfortable with some risk for potentially higher returns after taxes, particularly over the long haul, FMPs could be a more suitable choice.
No indexation benefit even for LTCG on debt mutual fund investments made before April 1, 2023
These debt mutual funds taxation rules changed: The government has rationalised the capital gains taxation rules. The new tax rules will impact debt mutual fund investments made on or before March 31, 2024, to avail of the indexation benefit. Redemptions and transfers made on or after July 23, 2024, will be taxed at the new LTCG tax rate of 12.5% without indexation benefit, provided debt mutual funds were held for more than 24 months.
Encourage compliance rather than enforcement: Highlights from FM Sitharaman's Income Tax Day speech
Finance Minister Nirmala Sitharaman highlighted key points during her speech on Income Tax Day, emphasising the need for tax authorities to use simple language in notices and circulars for better understanding. She mentioned receiving 58.57 lakh ITRs from first-time taxpayers and plans for a new Tax Code to reduce litigation. Sitharaman stressed on a friendly approach to encourage compliance, improving transparency, and efficiency in tax processes.
2 hybrid mutual fund categories offer 16% return in 3 years. Time for a portfolio rejig?
Aggressive hybrid and multi-asset allocation funds delivered an average annual return of 16% over the past three years. Their performance was fueled by positive movements in equity markets, strategic stock picks, and effective debt management. Investors should consider their financial goals when selecting between these funds, with tax considerations as secondary factors.
- Go To Page 1
IMF's Gita Gopinath supports ‘progressive taxation’, flags wealth tax complexities
In an interview with TOI, IMF's first deputy managing director Gita Gopinath expressed support for a progressive tax structure. She emphasized the importance of improving the implementation of existing capital income and property taxes but noted that wealth taxes present additional challenges, such as the complexity of taxing personal assets like homes.
View: Supreme Court under'mining' its own precedent with ruling on mining taxes?
The Supreme Court's recent ruling overturned a 1989 decision, granting states the power to tax mining activities alongside existing royalties. This verdict may cost companies over ₹1 lakh crore in financial liabilities. Despite waiving interest and penalties, the retrospective application causes significant economic uncertainty and affects business predictability.
Spectre of retrospective taxation hangs again: EAC-PM member on mining royalty verdict
The Supreme Court's July 25 verdict permitted states to collect past royalties and taxes on mining since April 2005, causing concerns over retrospective taxation. The judgement directs the Centre and mining companies to pay arrears, estimated between Rs 1.5-2 lakh crore, over a 12-year period. The decision has significant financial implications.
FM Nirmala Sitharaman defends tax regime, calls on academics to apply for more patents
Finance Minister Nirmala Sitharaman, speaking at the convocation ceremony of the Indian Institute of Science Education and Research in Bhopal, defended India's current taxation regime. She emphasized that the government's pressing challenges and essential spending needs, particularly in research and development, prevent tax cuts. While acknowledging the desire for lower taxes, Sitharaman stressed that India's transition to renewable energy and self-reliance requires substantial resources. She urged academics to seek patents, highlighting the importance of commercializing innovations to benefit society, supported by the government's investment in scientific research.
New share buyback rules from October 1, 2024: A higher tax for many, but these people will gain
New equity buyback rules: Budget 2024 amended the income tax laws on how share buybacks are taxed. The new laws announced in July will be effective from October 1, 2024. The new laws tax the share buybacks in a similar fashion as dividends are taxed now. The new income tax laws will impact most taxpayers negatively. However, certain taxpayers will gain as well.
Govt needs money to meet challenges, fund R&D, says Sitharaman
Finance Minister Nirmala Sitharaman defended India's taxation system at IISER Bhopal, emphasizing the need for resources to address national challenges and fund R&D. She urged scientists to advance renewable energy storage, citing the country’s self-funded transition away from fossil fuels. Sitharaman highlighted the government's investment in scientific research despite high taxes.
Companies race against taxing times to give buyback call
Within just the three weeks since the budget announcement on July 23, 15 companies have already announced buybacks, compared with 18 that did so between January 1 and July 23.
Mutual funds are a better investment option than stocks from a tax point of view; know why
The single most important point to be noted is that it’s far more beneficial, from a tax point of view, to invest in mutual funds than stocks. While this has been true since February 2018, the hike in long-term capital gains tax in this year’s Budget has made it that much more important. In any case, even earlier, many investors did not appreciate this about taxation.
Without drastically raising taxes, govt has simplified taxation, benefiting middle class: Nirmala Sitharaman in Finance Bill reply
Effective tax on annual income of Rs 15 lakh was reduced to 10% in 2023 and further reduced this year as well under new I-T regime, Sitharaman noted, adding that pending litigation and demands sorted under Vivad se Vishwas scheme helped middle class and small businesses.
Naga communities protest against illegal taxation by Naga Political Groups
In Kohima, thousands protested against multiple taxation by Naga militant groups. Organized by Angami Youth Organisation, the rally addressed threats to local contractors. The group demanded legal action and abrogation of ceasefire agreements for violations. Authorities have filed an FIR and are coordinating with the Ceasefire Supervisory Board to ensure compliance.
New capital gains tax after Budget 2024: STCG, LTCG rates on equity, debt MFs, ETFs, gold funds; latest mutual fund tax rules
Mutual fund taxation after Budget 2024: Union Budget 2024 has significantly overhauled capital gains tax on various assets, including mutual funds. The holding periods for short-term and long-term capital gains have been rationalised to 12 and 24 months, respectively. Additionally, the indexation benefit on long-term capital gains has been removed, leading to a uniform tax rate of 12.5% for all asset classes. Short-term capital gains tax on equities and equity-oriented funds has been hiked to 20%. These changes will have a substantial impact on mutual fund returns.
Landmark Supreme Court ruling changes taxation rules for mining operators
The Supreme Court ruled that states can tax mineral rights under the Mines and Minerals Act 1957. In an 8:1 ruling, they deemed royalty as a contractual consideration, not a tax. This verdict empowers states to impose levies on mining beyond royalty. However, this ruling might face further scrutiny regarding its retrospective applicability, potentially impacting mining operators financially.
Changes in taxation for mutual funds
The Union Budget 2024-25 updated capital gains taxes for financial assets. Equity-oriented mutual funds now have an LTCG tax exemption up to ₹1.25 lakh, with 12.5% tax on gains above. STCG tax increased to 20%. No indexation benefits for any mutual fund scheme, and changes for international funds and gold/silver funds. Debt MFs remain unchanged.
Finance Secy highlights divestment plans, says won't announce in advance as govt wants best value for public companies
Budget 2024: The government will not pre-announce its divestment plans to ensure optimal value for public companies, Finance Secretary TV Somanathan said in an exclusive interview with ET NOW on Wednesday. This strategic approach aims to maximize the financial returns from such divestments.
How your mutual fund SIPs would be taxed under the new income tax structure
The tax on short term capital gains and long term capital gains on equity mutual funds have increased after the announcement made in the budget by the Finance Minister Nirmala Sitharaman.
Budget 2024: Stable taxation to improve cigarette volumes
BREAKING: Union Budget for 2024-25 keeps cigarette prices stable! Smokers rejoice as taxes remain unchanged. Analysts predict positive impact on tobacco industry. ITC reports decline in legal cigarette consumption in India. Will this lead to a shift in tobacco consumption habits?
FM Sitharaman wants to widen India's tax-net even further, directly & indirectly
India's Finance Minister, Nirmala Sitharaman, has reiterated the need to widen the country's tax net, both directly and indirectly. She also mentioned the need for non-tax revenue mobilizations to improve Public Sector Undertakings (PSUs) dividends, which have seen high valuations and increased performance. Sitharaman also discussed asset monetisation, which involves maximizing the use of unutilised assets like stadiums or land available with PSUs for better purposes.
Centre to look at lowering duties for properties purchased by women
Finance Minister Nirmala Sitharaman, in Tuesday's Union Budget, urged states to lower high stamp duty rates for women’s property purchases, making it an urban scheme component. Also, quoting Aadhaar numbers, instead of Enrolment IDs, for taxes was proposed. These essential reforms aim to improve property transactions and ensure financial relief, highlighting the Finance Minister's vision for transparency.
Eco Survey: Time to free up space, rethink governance
A survey in New Delhi has urged the Indian state to relinquish control and reduce compliance burden in taxation to allow the private sector to grow. The survey argued that the state could free up its capacity and focus on areas where it has to, by letting go of its grip in areas it does not. It called for policymakers to engage in dialogue, cooperation, and coordination across ministries, states, and unions.
Budget should double standard deduction, raise basic exemption to Rs 3.5 lakh under new tax regime: EY
EY recommends significant tax reforms in the upcoming Budget, urging the government to double the standard deduction under the new concessional tax regime to Rs 1 lakh or increase the basic exemption limit to Rs 3.5 lakh. Key suggestions include maintaining corporate tax stability, rationalizing TDS provisions, and improving dispute resolution mechanisms.
GST Council Meeting: Sin goods windfall, tax relief talks, and more ahead of budget buzz
GST Council Meeting: The upcoming 53rd meeting of GST Council is poised to discuss several key measures that could pave the way for significant tax reforms ahead of the government's first full budget. Among the agenda items are -- the use of approximately Rs 70,000 crore collected from GST compensation cess on products like pan masala and cigarettes. Discussions may also cover the potential waiver of interest or penalties on tax notices issued between 2017 and 2020, excluding cases of deliberate default.
GST Council likely to deliberate on online gaming tax, Par panel recommendation on fertiliser
The GST Council is set to discuss various issues in its upcoming meeting, including taxation on online gaming and the recommendation to lower tax on fertilisers by the Parliamentary standing committee. The current GST rate on fertilisers is 5%, while raw materials like Sulphuric Acid and Ammonia face a higher rate of 18%. The council will also review the decision to levy 28% GST on the full value of bets for online gaming companies, which came into effect on October 1, 2023.
Load More
