Marketing a house you rented out? That’s fantastic news; but, keep in mind that your profit from it might be taxed. Every Indian property owner should be aware of the sale of rental property tax to prevent surprises and legally save money. This is a basic road map to get you across it. Is Tax Due When Selling Rental Property? Definitely yes. Whether the property was rented or not, if you sell it for profit the gain is capital gains taxable.The tax type remains the same; it is still handled as the sale of a capital asset regardless of the…
Author: Anurag Singh
Many Indians employed by multinational corporations get RSUs (Restricted Stock Units) as pay. RSUs sound great since they award shares of your company; but, they also carry tax obligations. RSU tax withholding is one of key components of this. Let’s figure out what you have to do and how it works. RSUs stand for what? Restricted Stock Units, or RSUs, are shares awarded to an employee by their company either as part of a pay scale or as a thank you. These shares vest over time, thus you never own them right away. Once vested, they start to show as…
Should you lease a shop, office space, or any commercial building, the income you get from it is taxable rather than merely passive. Understanding the treatment of rental income from commercial property under income tax can help you avoid penalties and possibly even save money.Let’s simplify it for you. Definitions of Commercial Rental Income The Income Tax Act regards all such income as “Income from House Property”. How is commercial property tax-paid rental income handled? As a matter of fact: Taxable income = (₹10,00,000 – ₹50,000) – 30% standard deduction – ₹2,00,000 = ₹4,65,000 (taxable). Important Tax Rules for Commercial…
You might pay more tax than you really owe occasionally. The good news is—you are able to undo it! A refund of tax in income tax is what this is known as. Though many Indians qualify for annual tax refunds, many lack knowledge on how to correctly claim them. Here is all you require in straightforward language. Describes a tax refund here: When: You will be refunded straight into your bank account once you submit your income tax return (ITR) and the system detects additional tax paid. Typical Grounds for Tax Refunds How to File an Income Tax Refund Claim…
India’s presumptive tax system is a straightforward approach to help reduce tax stress. You have most likely heard about the presumptive tax system if you are a small business owner, freelancer, or professional. Without delving into thorough accounting, this is a simplified approach to figure and pay income tax. The government instituted it to simplify life for those with modest to moderate incomes. To determine whether the presumptive tax system is appropriate for you, let’s examine how it operates. What is the Presumptive Tax System? Under the presumptive tax system, the Income Tax Department assumes your income at a set…
Getting payback from mutual funds or stocks sounds like free money. Like rent or salary, it is still income, thus personal tax on dividends is relevant. Investing in Indian companies should make you aware of the tax treatment of your dividend income. Let us clarify things for you easily. Describes what dividends are: Dividends are payments made from company earnings to its owners. Should you own some mutual fund units or shares, your bank account could get extra income. Dividends earlier on were tax-free for investors. But the regulations have evolved starting in 2020. Is taxable dividend income now? Yes.…
Should you have income, you could have to pay taxes on it. Personal income taxes are based on this fundamental idea. Every person in India pays taxes determined by their own income. Whether your income is taxed as a salaried employee, freelancer, or business owner, knowing this helps you legally save money and better plan. Let’s grasp the fundamentals in an understandable manner. Personal Income: Definition Personal income is any individual earnings of money. It can originate from several places: To figure your overall personal income, you add all these. Personal Taxes: Definition Personal taxes are those income taxes paid…
Should you sell a house, shares, gold, or any other valuable item and profit, you could have to pay personal gains tax. Applying to those who make money from selling personal assets, this is also known as capital gains tax. Let’s clarify what personal gains tax entails and how India implements it. Tax on Personal Gains: Personal gains tax is the tax paid on the profit from asset sales. The gain is the cost of purchase less your selling price. This tax relates just to the money you make from selling items you own; it is not based on your…
Once you retire, your primary income comes from a pension. You did know, though, that it is also taxable? Knowing the pension tax rate will help you to properly allocate your money, prevent surprises, and legally save taxes.Let us simplify it for you. What is a pension? Your regular payment following retirement is pension. It might originate from: Though it is retirement income, it is not totally tax-free. Does pension taxable apply? Surely. Under the Income Tax Act, pension is seen in India as salary income. You have to pay taxes on it using the income tax slab rates relevant…
Capital gain is the profit you make if you profitably sell mutual funds, shares, gold, or real estate. You indeed have to pay taxes on it. Not to worry though; paying taxes on capital gains is not as difficult as it first sounds. Knowing the correct information will also help you to arrange legally for tax reduction. Allow me to dissect it here. Explain Capital Gains Selling an asset for more than you paid for results in capital gains. Typical resources consist of: There exist two forms of capital gains: Capital Gain Taxes Kind of asset held; length of holding…
