Most of us check our salary slip for one number: what lands in the bank. This month, many salaried employees will find that number smaller. There’s been no pay cut and no change in CTC. One deduction simply grew overnight, starting 17 September.
The reason is the EPFO wage ceiling, which has been revised for the first time since 2014. The money isn’t lost, because it goes into your PF account. Whether you get any tax relief on it depends on which regime you’ve chosen. And if your employer’s share is built into your CTC, the dip could be twice what you expect.
These days, a good part of that take-home also goes into US stocks, either through a US broker app or through GIFT City. The GIFT City route is often pitched as the smarter one for tax. But does the route you pick actually change what you pay?
And if any of those investments never made it into your ITR, whether it’s an old overseas account or RSUs from a previous employer, the Income Tax Department may already know. It has been sending SMS and emails to taxpayers with unreported foreign assets. You can still disclose them and get immunity, but only until 31 December 2026.
We’ve handpicked threads on these topics in today’s edition.
Why is your in-hand salary lower after the EPFO wage ceiling hike?
Until 16 September, PF was calculated on a maximum wage of ₹15,000 a month, which capped your contribution at ₹1,800. From 17 September, the ceiling has gone up to ₹25,000, the first revision since 2014. So if your basic pay is ₹30,000, your monthly PF deduction rises by ₹1,200. But if your employer’s contribution is part of your CTC, the actual drop in your take-home could be…Continue Reading
Is investing in US stocks via GIFT City more tax-efficient than a US broker?
GIFT City platforms let you buy US-listed shares under the IFSCA Global Access framework, and many investors assume that also brings a tax advantage. To find out, you have to compare how each route treats your holding period, capital gains, dividends and the TCS on money you send abroad. If you hold NSE IFSC Receipts, you have a separate deadline to watch, because the last date to sell them is…Continue Reading
How do you disclose unreported foreign assets under FAST-DS 2026?
If the Income Tax Department has sent you an SMS or email about overseas assets, it’s likely linked to the Foreign Assets of Small Taxpayers Disclosure Scheme 2026. The scheme lets you declare foreign assets or income that never made it into your ITR, and you get immunity once you pay. How much you pay depends on which of the two categories your assets fall under. One costs a flat ₹1 lakh, while the other…Continue Reading
FAQs
My September salary was processed after 17 September. Which PF wage ceiling applies?
Both. September wages are split: the old ₹15,000 ceiling applies from 1 to 16 September, and the new ₹25,000 ceiling applies from 17 September onwards. Your September PF deduction will be a mix of the two.
Will the higher PF deduction reduce my tax?
Only under the old tax regime. There, your PF contribution counts towards the ₹1.5 lakh deduction (earlier section 80C), so a higher contribution helps if you haven’t already used up that limit. The new tax regime gives no deduction for your PF contribution.
When do gains on US stocks become long-term?
After more than 24 months, whichever route you use. NYSE and Nasdaq aren’t Indian exchanges, so the 12-month rule for listed Indian shares doesn’t apply. Long-term gains are taxed at 12.5% without indexation, and the ₹1.25 lakh exemption isn’t available.
How do I value my foreign assets when filing Form 1 under FAST-DS 2026?
Use each asset’s fair market value as of 31 March 2026, following the scheme’s valuation rules. Keep your bank statements, brokerage records, purchase deeds and RSU or ESOP letters ready before you start.