M. Pattabiraman's Blog, page 45

I am 20 years old; should I choose Nifty Next 50 or Nifty Midcap 150 index fund?

A subscriber to our YouTube channel asks, “I am 20 years old. I want to start investing. Which can I choose, Nifty Next 50 or Nifty Midcap 150 index fund?” For older people like me, it is lovely that you want to start investing so early (I appreciate that it is now quite common for...

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How much return should I get from real estate sales to benefit from 12.5% tax without indexation? (Budget 2024)

Budget 2024 has revised the real estate taxation rule. Long term capital gains tax has been modified from 20% with indexation to 12.5% without indexation for any sale made on or after 23rd July 2024. We already showed via an example that this could mean a higher tax of a few lakhs! Budget 2024: Real...

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Budget 2024: FAQ on capital gains taxation

In response to our budget 2024 coverage – Budget 2024 Capital Gains Taxation Guide – several readers have asked us for further clarifications. This is an FAQ on capital gains taxation. 1. When will the new rules come into force? It will apply to all redemptions made on or after 23rd July 2024. 2. Do these...

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How I chose a health insurance policy for my family

In this article, Lakshman shares how he bought a health insurance policy for his family. We are grateful to the members of the freefincal community for generously sharing their research with all of us. Note: Health insurance is an extremely personalized purchase. Please do your extensive research before buying. I started learning about personal finance...

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Budget 2024: How Share buybacks will be taxed from 1st Oct 2024

Share buybacks will be taxed as a dividend with the cost of acquistion set as as capital loss from 1st Oct 2024. Why was this done? The budget memorandum states, “Both dividend as well as buy-back are methods for the company to distribute accumulated reserves and thus ought to be treated similarly.” It further adds,...

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Additional “tax savings” required to use the old tax regime after budget 2024

Last Updated on July 26, 2024 at 8:51 am Budget 2024 has further reduced the tax burden on those opting for the new tax regime. It has been clear for a couple of years now that the old tax regime is unlikely to get any further concessions. Also see: Budget 2024 modifies NPS deduction 80CCD(2) only...

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Budget 2024: Upcoming changes to the National Pension Scheme

Last Updated on July 25, 2024 at 6:03 pm There were three proposals related to the National Pension Scheme in Budget 2024. A discussion. 1. The finance minister said, “The Committee to review the NPS has made considerable progress in its work. I am happy that the Staff Side of the National Council of the...

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How should I modify my investment strategy after budget 2024?

Many readers have asked us how they should modify their investment strategy after 2024. Some of the critical aspects of budget 2024 that will affect no-so-rich investors are: Tax on equity investments has increased from 10% to 12.5%. The increase of the Rs 1 lakh tax-free limit to Rs. 1.25 is largely inconsequential. Share buybacks...

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Budget 2024 Capital Gains Taxation Guide

Last Updated on July 24, 2024 at 1:36 pm This article explains how capital gains from different investments will be taxed. These are applicable for redemptions made on or after 23rd July 2024. Indexation benefits are history for all asset classes. Instrument New STCG New LTCG Funds holding 65% or more of domestic equity or...

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Budget 2024: How will fund of funds be taxed from July 23rd 2024?

Last Updated on July 24, 2024 at 9:43 am Budget 2024 has proposed a Big change in mutual fund taxation rules, as explained in our earlier report. This article explains how fund of funds (FoFs) will be taxed from 23rd July 2024. Note: This is based on our understanding of budget documents. Errors, if any,...

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