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CA Sanjiv Kumar
Enlightened
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  1. CA Vishnu Ram Enlightened

    Capital Gains Taxation: Before & After Budget 2025 Asset Type Earlier (Before Budget 2025) After Budget 2025 Indexation Allowed? Listed Equity Shares & Equity-Oriented Mutual Funds (Holding > 12 Months) ✅ LTCG up to ₹1 lakh – Tax-free (Section 112A) ✅ LTCG above ₹1 lakh – Taxed at 10% (wiRead more

    Capital Gains Taxation: Before & After Budget 2025

    Asset Type Earlier (Before Budget 2025) After Budget 2025 Indexation Allowed?
    Listed Equity Shares & Equity-Oriented Mutual Funds (Holding > 12 Months) ✅ LTCG up to ₹1 lakh – Tax-free (Section 112A)
    ✅ LTCG above ₹1 lakh – Taxed at 10% (without indexation)    		 ✅ LTCG up to ₹1.25 lakh – Now tax-free
    ✅ LTCG above ₹1.25 lakh – Now taxed at 12.5% (without indexation)    		 ❌ No Indexation Allowed
    Unlisted Shares (Holding > 24 Months) ✅ LTCG taxed at 20% with indexation (Section 112)
    ✅ Non-residents taxed at 10% (without indexation)    		 ✅ No change in tax for residents (still 20% with indexation)
    ✅ Non-residents now taxed at 12.5% (without indexation)    		 ✅ Yes, for residents
    Debt-Oriented Mutual Funds (Holding > 36 Months) ✅ LTCG taxed at 20% with indexation (before April 1, 2023)
    🚨 After April 1, 2023 – No indexation, taxed as per slab rate    		 ✅ No change – Gains taxed as per income tax slab rate (without indexation) ❌ No Indexation (since April 1, 2023)
    Real Estate (Land & Building) (Holding > 24 Months) ✅ LTCG taxed at 20% with indexation
    ✅ Exemptions available under Sections 54 & 54F if reinvested in property    		 ✅ No change – Still 20% with indexation ✅ Yes
    Gold & Other Capital Assets (Holding > 36 Months) ✅ LTCG taxed at 20% with indexation ✅ No change – Still 20% with indexation ✅ Yes
    Cryptocurrency (Virtual Digital Assets – VDAs) ✅ LTCG taxed at 30% (without indexation or deductions) ✅ No change – Still taxed at 30% without indexation ❌ No Indexation Allowed

    🔹 Key Takeaways from Budget 2025

    ✅ Indexation rules remain unchanged – It is still available for unlisted shares, real estate, and gold, but not for listed shares, debt funds, or cryptocurrencies.
    ✅ LTCG tax on listed equity shares & mutual funds has increased from 10% to 12.5% (without indexation).
    ✅ Threshold for tax-free LTCG on listed shares has increased from ₹1 lakh to ₹1.25 lakh.
    ✅ Non-residents (including FIIs) now pay 12.5% instead of 10% on LTCG from unlisted shares.
    ✅ No impact on taxation of debt mutual funds (still taxed at slab rate without indexation).

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Anonymous
Anonymous
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  1. Ramesh Sharma Enlightened

    The best way to file an ITR is to reach a professional who is well-versed in and experienced in income tax. Though you can file yourself through the ITR portal, but it may lead to some mistake as filing require lots of knowledge and experience of Income Tax Act.

    The best way to file an ITR is to reach a professional who is well-versed in and experienced in income tax. Though you can file yourself through the ITR portal, but it may lead to some mistake as filing require lots of knowledge and experience of Income Tax Act.

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Ramesh Sharma
Enlightened
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  1. CA Vishnu Ram Enlightened

    The Union Budget 2025 has introduced key modifications to the taxation of equity shares and equity-oriented mutual funds. The following table summarizes the before and after impact of the changes: Comparison of Capital Gains Taxation Before and After Budget 2025 Type Earlier After Budget 2025 Short-Read more

    The Union Budget 2025 has introduced key modifications to the taxation of equity shares and equity-oriented mutual funds. The following table summarizes the before and after impact of the changes:

    Comparison of Capital Gains Taxation Before and After Budget 2025

    Type Earlier After Budget 2025
    Short-Term Capital Gains (STCG) – Holding Period ≤ 12 Months ·       Listed Shares (STT Paid): Taxed at 15% under Section 111A.

    ·       Unlisted Shares: Taxed as per the individual’s income tax slab rate.

    		 No Change
    Long-Term Capital Gains (LTCG) – Holding Period > 12 Months ·         Listed Shares (STT Paid):
    – Gains up to ₹1 lakh per financial year are tax-free under Section 112A.
    – Gains exceeding ₹1 lakh are taxed at 10% (without indexation).

    ·         Unlisted Shares:
    – Taxed at 20% with indexation benefit under Section 112.

    ·          For non-residents, LTCG on unlisted shares is taxed at 10% (without indexation).

    		 ·     New Rate (Effective July 23, 2024): 12.5% on LTCG exceeding ₹1 lakh.

    ·     This change applies to the sale of listed equity shares and equity-oriented mutual funds where Securities Transaction Tax (STT) is paid.

    ·     The LTCG tax rate for non-residents, including FIIs, has also been increased from 10% to 12.5%, aligning with resident taxpayers.
    Indexation Benefit ·       Unlisted Shares: Indexation allowed under Section 112. ·       No change announced for indexation benefits (confirmation awaited in the Finance Act).
    Rebate Under Section 87A ·       Taxpayers with net taxable income up to ₹7 lakh (under the new tax regime) could claim a full tax rebate under Section 87A. ·      Rebate is no longer available for short-term and long-term capital gains from equity shares, making all gains fully taxable.
    Exemption Under Section 112A ·       LTCG up to ₹1 lakh per financial year is exempt from tax. ·      Exemption limit increased to ₹1.25 lakh per financial year.
    Additional Tax Considerations ·       Surcharge: Applies if total income exceeds ₹50 lakh.

    ·       Cess: 4% Health & Education Cess on total tax.

    		 No Change
    Grandfathering Rule for LTCG ·       For shares purchased before 31st Jan 2018, the acquisition cost is adjusted to the highest market price on that date to limit taxable gains. No Change

     

    Key Takeaways from Budget 2025

    ✅ Higher LTCG Tax Rate: Increased from 10% to 12.5% for gains exceeding ₹1 lakh.
    ✅ Higher LTCG Exemption Limit: Increased from ₹1 lakh to ₹1.25 lakh per financial year.
    ✅ No More Rebate (87A) on Capital Gains: Investors can no longer claim this benefit.
    ✅ Impact on Foreign Investors: FIIs and non-residents now face 12.5% LTCG tax, up from 10%.
    ✅ Short-Term Capital Gains Tax (15%) Remains Unchanged.

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Ramesh Sharma
Enlightened
Asked: In:

  1. KULDEEP SHARMA Teacher

    Following process should be adopted if you purchases any property of which DLC rate/ Stamp Value exceeds Rs. 50,00,000/- and rate of TDS is 0.1%.. At the time of payment of installment or date of registry whichever is earlier.   You are allowed 5 days for making TDS payment after the month in whichRead more

    1. Following process should be adopted if you purchases any property of which DLC rate/ Stamp Value exceeds Rs. 50,00,000/- and rate of TDS is 0.1%.. At the time of payment of installment or date of registry whichever is earlier.   You are allowed 5 days for making TDS payment after the month in which transaction took place
    2. Go to the login page of the official Income Tax website (https://eportal.incometax.gov.in/iec/foservices/#/login?language-code=en)
    3. log in to your account
    4. Navigate to the “E-file” section and select ‘e-pay Tax
    5. In the ‘New payment’ section click the “Proceed” button for ’26QB (TDS on sale of the property)
    6. Fill in three pages with the below necessary information:
    • DetaBuyer and seller basic details
    • ils of property
    • Ttax deposit details
    • Property consideration credited or paid
    • Property address details
    • Contact details
    • Residential status of the seller.

    6. Choose your preferred payment mode: ‘Pay later’ or ‘Pay Now’.

    7. Click on ‘Pay Now’ to make payment of TDS

    8. After payment, the Form 26QB acknowledgment will be generated and can be downloaded.

    9. Login as a Taxpayer on the TRACES Portal (https://contents.tdscpc.gov.in/) and generate the TDS Certificate from

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Ramesh Sharma
Enlightened
Asked: In:

  1. KULDEEP SHARMA Teacher

    Yes, TDS is applicable on transportation Exp. Subject to following Single payment to single transporter exceeds Rs. 30000/- or Multiple payments to single transporter exceeds Rs. 100000/-   Rate of TDS is 1% and 2% if paid to partnership firm or companies   There is exemptions from TDS ifRead more

    Yes, TDS is applicable on transportation Exp. Subject to following

    Single payment to single transporter exceeds Rs. 30000/- or Multiple payments to single transporter exceeds Rs. 100000/-

     

    Rate of TDS is 1% and 2% if paid to partnership firm or companies

     

    There is exemptions from TDS if deductee provides you declaration U/s 194(6) for non deduction

     

    But in both above cases (whether TDS deducted or declaration received) you must file your TDS return..

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Manish Kumar Gupta Enlightened

    TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision. Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a speciRead more

    TDS is NOT applicable on Demat account opening charges because they are in the nature of bank charges or service charges, which do not fall under any specific TDS provision.

    Such charges are generally considered as a payment for services, and TDS is applicable only if the payment falls under a specific section of the Income Tax Act.

    Since Demat account opening charges are generally not categorized as professional fees, commission, or contractual payment, TDS is NOT required to be deducted under the Income Tax Act.

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Ramesh Sharma
Enlightened
Asked: In:

  1. CA Vishnu Ram Enlightened

    If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods. No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services). GST might apply, but TDS is not applicable under the Income Tax Act.

    • If you are purchasing ready-made T-shirts with your company logo printed on them, it is treated as a purchase of goods.
    • No TDS is required under Section 194C (TDS on contracts) or Section 194J (TDS on professional services).
    • GST might apply, but TDS is not applicable under the Income Tax Act.
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