Hi there! 
With the festive season behind us, it’s time to bring our full attention back to the financial calendar. If you’re a business owner or actively trading, you already know what’s sitting at the top of your to-do list: the deadline to submit tax audit report and file ITR for AY 2025-26 is just two days away.
Meanwhile, there are some interesting IPOs lined up in the coming few weeks, including the likes of Groww, Lenskart, Studds and Meesho. So before you chase those listing gains, it’s wise to understand how your capital gains are taxed.
Also, a complete portfolio isn’t just about equities. A well-diversified portfolio, includes a mix of asset classes, and one of them is debt. It provides stability and predictable returns, balancing the volatility of equities. Now a popular way to invest in debt is through debt mutual funds and it’s just as important to understand how they’re taxed.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
How much tax I need to pay on my IPO listing gains?
Most retail investors apply for IPOs with the hope to make some quick listing gains. And if you were lucky to get an allotment and sold your IPO shares within 12 months of allotment, your profits will be taxed as short-term capital gains. But there’s something most people don’t know about…Continue Reading
Am I required to get a tax audit done?
When you have a business or earn professional income, you’ll have lots of money coming in and going out. To keep track of everything, you need to maintain a record of these transactions called your ‘books of accounts.’ Sometimes, the income tax department wants to make sure you’re doing it right. So, if your total sales/receipts exceed…Continue Reading
Are profits from debt funds tax-free up to ₹12 lakh?
Debt mutual funds primarily invest in fixed-income instruments like government securities and corporate bonds. But tax rules for these funds have changed quite a bit in recent years. In most cases, your profits are now taxed at your applicable slab rate. However, if you invested before…Continue Reading
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FAQs
What if I file my ITR without tax audit?
If tax audit is applicable but you file your ITR without it, your return will be marked as defective and you’ll receive a notice u/s 139(9). There are additional penalties too which may be charged by the assessing officer.
What is the tax exemption limit for LTCG under section 112A?
Long-term capital gains from listed shares, equity mutual funds, or business trust units are tax-free up to ₹1.25 lakh per year from FY 2024-25. Any gains above this limit are taxed at 12.5% plus applicable surcharge and cess.
Do I need to pay advance tax on stock market income?
Yes, if your total tax liability from capital gains and dividends exceeds ₹10,000 in a year, you need to pay advance tax in quarterly instalments to avoid interest penalties under sections 234B and 234C.
WHAT’S YOUR ANSWER?
Up to what amount is there no TDS on dividend income?
- ₹5,000
- ₹10,000
- ₹12,000
- ₹15,000
RESULTS FROM LAST DIGEST
Which of these gold investments is tax-free after 8 years?
A) Physical gold (6%)
B) Gold ETFs (7%)
C) Sovereign Gold Bonds (81%) 
D) Digital gold (6%)
81% of people chose the right answer. Well done!