Rajesh sold a flat for ₹1.2 Cr. He got ₹14 lakhs CASH that he deposited in bank

Financial Intelligence Unit (FIU) reported this to income tax (IT)

Rajesh was asked to explain source of cash deposit

Here's how a 75-member FIU team helps IT identify tax evasion at scale🧵👇 [1] About FIU-IND

FIU – India is India’s central agency for combating money laundering and terrorist financing

It operates under the Ministry of Finance, empowered by the PMLA, 2002

It's an intelligence and analysis unit, not a law enforcement body

A client at TaxBuddy sold two of his properties in Nashik and had ₹1.2 crores of capital gains.

He wanted to move and buy a house in Mumbai.

We reduced his tax liability to ZERO. Here's how🧵👇 [1] Capital Gains Exemption

Typically, when you sell 1 house to buy another one, the gains are exempt under Section 54.

You can sell 1 property & buy 2 residential properties to claim exemption.

But complexities in exemption arise when you have sold 2 properties.

PMS have over ₹4.5 lakh crore+ worth of AUM

However, they come with serious tax inefficiencies which many don't know

Here's how a PMS is taxed vs an equity mutual fund🧵👇 [1] Capital Gains Tax

Mutual Funds enjoy a pass-through structure. Tax is levied only when you redeem units.

But PMS? Each trade the manager executes inside your demat attracts tax immediately.

A user at TaxBuddy sold his flat in Mumbai and had ₹1.95 crores of capital gains.

He wanted to move to his hometown and wanted to buy 2 floors.

His tax liability was reduced to ZERO. Here's how🧵👇 [1] Capital Gains Exemption

When you sell a residential property and buy another residential property, your capital gains are exempt.

This exemption is available under section 54.

But there are conditions; let's break them down:

The Govt owes ₹1,18,418.4 Cr to people for SGBs

As Gold's price rose ~45% b/w 2021 and 2024, the government realised that launching SGBs was a blunder.

Here's a detailed breakdown of government's costliest borrowing mistake🧵👇 [1] Problem of Gold imports

India imported gold worth over ₹2.1 lakh crores in 2014-15.

This commodity, especially loved by Indians, led to a significant current account deficit.

Government thought of countering this problem through SGBs.

The Indian market cap has fallen by 12.52% in the last six months.

54% of the top Mid-cap & Small-cap stocks are down by 25%+📉

But your notional losses can help you save tax. Read this to understand TAX LOSS HARVESTING🧵👇 [1] What is Tax Loss Harvesting?

In India, capital gains tax is calculated on gains realised on sale of capital assets

However, you may have notional losses on some assets

Tax loss harvesting means selling assets with notional losses to reduce taxable gains during the year

Myth: You can't claim HRA if you live with your parents.

Reality: It is allowed. But you need to be careful.

Here's all you need to do to claim HRA by paying rent to your parents: 🧵👇 [1] Background

If you pay rent, then you are eligible to claim a deduction subject to the provisions of Section 10(13A) under old regime.

There's no restriction around paying rent to your parents and claiming House Rent Allowance (HRA) exemption.

Then what's the problem?👇

Salary: ₹14.65 Lakhs
Tax: ₹0

With the new budget, here's how you can pay ₹0 tax even on a salary of ₹14.65 lakhs p.a.🧵👇 [1] Salary Structure

💼 CTC: ₹14,65,000
✅ Basic Salary: ₹7,32,500 (50% of CTC)

The strategy? Reduce taxable income through the following deductions:

HUF can save ₹1.5 lakh of tax each year.

This can yield a corpus of ₹1.25 crores over 20 yrs.

Yet, 98% taxpayers do not have an HUF because of complexities.

Clearing all doubts on HUF and you can benefit🧵👇 [1] What is an HUF?

HUF stands for Hindu Undivided Family.

It is considered as a separate person in the eyes of tax laws.

So you get the benefit of the basic exemption limit and reduced tax rates on initial income of ₹7-₹10 lakhs.

An NRI friend wanted to transfer money to his overseas bank account.

He was confused between NRE/NRO accounts as there are many restrictions & tax issues.

Simplifying the confusion of NRE/NRO accounts for all 1.59 Cr NRIs🧵👇 [1] Non-Resident (External) Rupee Account

This a/c is used to hold & manage foreign income (earnings outside India).

NRIs & Persons of Indian Origin can open this account.

But remember, only foreign currency deposits are allowed.

In Q3 of FY 23-24, our economy posted a 8.4% growth rate.

But the devil lies in the details:

- 2 encouraging points
- 2 warning signs
- 2 optimistic trends

Let’s unravel each of them
[A thread🧵👇]
(1/5)
#IndianEconomy #GDPgrowth
@TaxBuddy1 - Encouraging points

India has witnessed a promising 11% Industrial growth, along with a healthy 10% growth in investment.

This is accompanied by narrowing trade deficit, increasing services export and in turn lowering Current Account Deficit (CAD).
(2/5)
#IndianEconomy #GDPgrowth

My English was as horrible as that of Manoj from "12th Fail."

I could've mixed up "Tourism" with "Terrorism" in India in UPSC exams.

Then how did I overcome and crack the IRS in one go?🧵👇 I finished my earlier studies at a Marathi medium school, so being really good at English seemed tough for me.

It got even trickier when I switched to an English medium in my college days.

Taxation of Futures and Options transactions is most confusing with more myths prevalent that facts ! (1/9)
#ThingsToRememberThisTaxSeason
@TaxBuddy1 In case of a loss, you may not need to pay tax, but still you have to file an income tax return.
It has major benefit. You can carry forward the loss to next year. (2/9)
#ThingsToRememberThisTaxSeason
@TaxBuddy1

Never take a home loan under single ownership.

I know a couple who dreamed of buying a house in Bengaluru.

Both of them had a great career!

Usually, a couple takes home loan under one spouse's name.

However, this couple took the loan under joint ownership.

Why?👇
@TaxBuddy1 The wife has a taxable income of 17 lakh, while husband's taxable income is 18 lakhs.

Under joint ownership, both can claim a deduction of 2 lakh each for home loan interest.
@TaxBuddy1