Overview on Tax Treatment on Gratuity in India What is Gratuity? Gratuity is a lump sum paid by an employer to an employee in recognition of long-term service, governed by the Payment of Gratuity Act, 1972. It becomes payable on retirement, resignation, death, or disablement after at least 5 years of continuous service (not needed …
Savings Account – Rules for Transactions to Avoid Income Tax Scrutiny The Income Tax Department monitors high-value transactions through banks’ Annual Information Statement (AIS) & SFT reporting. Certain activities in savings accounts can attract scrutiny if they appear unusual or exceed prescribed limits. Keep your financial transactions transparent, documented, and consistent with your declared income. …
For an under-construction house, the tax treatment of home loan interest is a bit different from a ready-to-move property. Interest During Construction (Pre-Construction Interest) Not deductible during construction. It’s Called Pre-construction Interest. You cannot claim interest deduction U/s 24(b) until the construction is complete. Once construction is completed (i.e., you get possession or the completion …
How Restricted Stock Units vs Employee Stock Options taxation in India Types of ESOPs & Related Stock-Based Incentives Employee Stock Option Scheme (ESOS) : Employee Stock Option Plan allows employees the right (not obligation) to buy company shares at a predetermined price after a vesting period. Employees must decide whether to exercise based on the …
Good News for Salaried Taxpayers- New Rules for Salaried Employees Finance Act, 2025 raises tax-free salary perk limits to INR 4 lakh for specified employees and INR 8 lakh for overseas medical treatment, effective April 1, 2025. The Finance Act, 2025 has brought major relief for employees by raising the income thresholds for tax-free …
FAQs on New Tax vs Old Tax Regime From AY 2024-25, the new tax regime under Section 115BAC is the default tax regime for Individuals, HUFs, AOPs (excluding co-operative societies), BOIs, and Artificial Juridical Persons. However, taxpayers can opt out of the new regime and choose the old regime. Non-Business Income Cases: Option can be …
The default regime is the new regime for ITR filing. Default Regime for ITR Filing: The new tax regime is the default for all taxpayers (as per the Finance Act, 2023). Form 10IEA Filing Requirements (AY 2024–25 onwards) ITR Form Requirement to file Form 10IEA Switching Between Regimes Notes ITR-1 Not required Allowed every year …
Important tax rules for F&O (Futures & Options) and Intraday Trading Why Must Gains or Losses from F&O Be Reported in ITR? Mandatory Compliance: Income tax authorities have full access to trading data through exchanges. Non-disclosure may trigger notices and penalties. Tax Optimization: Reporting losses allows you to set them off against other incomes and …
Eligible & Ineligible expenses while calculating Capital Gain Overview of eligible and ineligible expenses while calculating Capital Gains on property sales and highlights specific rules for NRIs and under different tax regimes. Eligible Expenses (Allowed for Capital Gains Calculation) These can be added to the cost of acquisition/improvement: Brokerage/Commission Structural Renovation (if part of a …
How income from house property is taxed in India under the Income Tax Act. Income from House Property – Section 22 to 27 (Overview) Basic Conditions to Qualify as Income from House Property: Income is taxable under “Income from House Property” if you are the owner (legal or deemed) of the property. The property includes …