If you hold listed tax-free bonds and trade them within one year of acquisition, the appreciation will be considered short-term in nature. They will be simply added to your income and taxed accordingly. If held for more than one year, the profit will be subject to LTCG tax of 10 per cent plus cess, without indexation benefits. However, interest earned will not be subject to any tax. Listed corporate bond holdings, too, acquire long-term status after one year. Interest earned, though, is subject to tax. For unlisted bonds, the relevant holding period to be considered long-term is three years. LTCG is taxed at 20 per cent plus cess, with indexation. … [Read more...] about The long and short of capitals gains tax
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The question is this: when the economy doesn't offer students enough employment opportunities, who should be paying up their unpaid debt? One argument is if the government is willing to waive off debt of stressed farmers every now and then, it should also do the same for students in a bad economy. Indian banks have collectively waived off Rs 3.14 lakh crores of farm loans in the last decade. That excludes the Maharashtra debt scheme. … [Read more...] about Why have Indian banks stopped lending to students?
> Additional deduction of Rs 1.5 lakh was provided to first time home buyers in the Finance Act 2019. One of the conditions to avail this benefit is that the stamp duty value of such property should not exceed Rs 45 lakh – this denies full usage of the benefit of additional deduction of Rs 1.5 lakh as the middle-income group taxpayers even in Tier-2 cities may not qualify for such a deduction owing to higher housing costs. … [Read more...] about Budget 2020: 7 policy measures that are likely to be announced by the finance minister