Should you invest in mutual funds or shares, you most likely will get dividends. Do you, however, know how dividend in income tax is treated in India? Declaring it accurately helps you stay out of hot water with the tax authorities. Let us grasp this straightforwardly and precisely. What is a dividend? A dividend is a profit a company distributes to its owners. Should you be a shareholder of a company and it turns a profit, you might be entitled to a dividend. In income tax, how is dividend treated? Companies paid taxes on dividends earlier on, before distributing them…
Author: Anurag Singh
One phrase you might run across when handling the accounts for your business is deferred tax credit.Although it sounds complicated, don’t worry; over time, this idea will prove to be rather useful for your company. Let’s simplify what it means in common language. Deferred tax: Deferred tax results from differences between income shown in your accounting records and income reported to the tax department. This yields: Deferred tax credits are what? A deferred tax credit is a benefit your company gains from paying extra taxes resulting from transient variances.One can use this credit to reduce taxes in next years. As…
Knowing how corporation tax brackets operate is crucial if you run an Indian business. Based on its structure and income, these brackets determine the tax due amount for your company. Let us dissect it simply and clearly. Define Corporation Tax. Corporation tax is what businesses pay on their profits. Unlike personal income tax, this is not It is computed from a company’s net profit following all deductions for expenses. The mechanics of corporation tax brackets Companies in India are taxed depending on several criteria. The following factors affect the corporation tax brackets: 1. Household Businesses Typical tax rates: 2. Novel…
Knowing the corporate tax rebates system will help you to save a lot of money if you run an Indian business. To boost investment and company development, the government grants several tax advantages. We will define what it means, how it works, and how your business might gain from this blog here. Define a Corporate Tax Rebate A corporate tax rebates are a decrease in the overall income tax a business must pay. The government grants it to encourage job creation, investment, and commercial activity. Whose Claim Is It? Forms of Indian Corporate Tax Rebates Claiming Corporate Tax Rebates helps…
Building riches in India is best done by owning real estate and collecting rental income. When it comes to claiming rental income on taxes, however, many people are perplexed. This blog will teach you the fundamentals of accurately presenting your rental income when submitting income tax returns. Rental Income: what is it? Rental income is what you get when someone pays rent while lodging on your property. Every year you file your income tax return and must declare this income. For what reason should one claim rental income on taxes? Show Rental Income in ITR: How to Filging your tax…
Investing in foreign real estate can be fascinating, but it also comes with rules, particularly regarding capital gains tax on foreign property.If you are an Indian national selling real estate overseas, you should know how taxes treat your earnings. Tax on Capital Gains: A capital gain is the additional money you make when you sell a house for more than you paid for.In India, this increase is taxed under capital gains tax. Do Indians pay taxes on overseas real estate? Sure.Should you be an Indian resident seeking tax benefits, you have to report and pay taxes on your worldwide income.Capital…
Shares and mutual funds are ways many people make money. While the rest of this money could be profit from selling the investment, some comes as dividends. “Do I have to pay capital gains tax on dividends?” is a regular question. Let us straighten out the uncertainty. In what sense is a dividend? A dividend is the money a company distributes to each of its owners from profits. For instance, you will get that amount straight into your bank account should you own Infosys shares and the company announces a ₹10 per share dividend. Does Dividend Capital Gains Tax exist?…
Should you be an NRI (Non-Resident Indian) with property or investments in India, you could be curious about the tax you would pay upon sale. Knowing the clear guidelines the Indian government has regarding capital gains tax for non-residents will help you save money and stay out of legal hotlines. Capital Gain: What is it? Selling a capital asset—such as shares, mutual funds, real estate, gold, etc.—for more than what you paid for results in a profit known as capital gain.In particular:For ₹50 lakh, you purchased a flat in India, then sold it for ₹80 lakh. Your capital gain, at…
Companies in India must pay taxes on the profit made when they sell assets, including mutual funds, shares, or real estate. The tax paid on this profit—which is known as capital gain—is called capital gains tax. Understanding how a capital gains tax company is taxed under Indian law will help you run a company. Describes Capital Gain: When a capital asset—such as land, building, shares, mutual funds, etc.—is sold for more than its purchase cost, the profit is known as a capital gain.For example:Purchased for ₹50 lakh, a company sells it later for ₹80 lakh. Taxed and representing capital gain,…
Most people who hear the term avoiding tax picture something illegal. But there’s a big difference between tax avoidance and tax evasion. Legal and wise one; illegal and dangerous one other. This blog will discuss how avoiding tax legally in India might help you save money. Know the Difference Between Tax Avoidance and Tax Evasion Using legal strategies and tax laws will help you to lower your taxes. Permission granted by the government. Tax evasion—that is, hiding income or providing false information—is illegal and punished. Therefore, when we say avoiding taxes, we are referring to wise tax planning rather than…
