CA Bhavesh

  🕵️‍♂️ India’s Crypto Tax Crackdown: Offshore Exchanges Under Scrutiny CA Bhavesh Panpaliya | 8888755557 ❓ Why are Indian crypto investors being scrutinized for using offshore exchanges like Binance? Because they’re skipping the taxman. Since July 2022 , India made it mandatory to deduct 1% TDS on every crypto transaction . While Indian exchanges comply, foreign platforms don’t , leading many to think they found a loophole. 👉 Example: If you sold ₹1 lakh worth of Bitcoin on WazirX, you’d pay ₹1,000 as TDS. On Binance? Zero. That’s why the tax department is watching closely. ❓ Why did Indian traders move to foreign platforms in the first place? To dodge high crypto taxes. India taxes crypto profits at 30% and deducts 1% TDS on every sale— much higher than stock market rates. Offshore platforms seemed like a tax-free haven. 💡 Key Insight: Many assumed that if there's no auto-deduction , there’s no tax liability . That assumption is now prov...

  💸💼 Capital Gains, Rebates & Special Incomes: What Budget 2025 Means for You ❓ Q1. Why does the ₹12L rebate not apply to capital gains or lotteries? Because Section 87A applies only to normal slab income (like salary/business/profession). 💡 Case Study: Mr. A earns ₹12L salary → Zero tax after 87A rebate Mr. B earns ₹12L LTCG → ₹1.25L exempt → ₹10.75L taxable → Tax = ₹1,34,375 (at 12.5%) Mr. C wins ₹12L lottery → Tax = ₹3.6L (flat 30%)   ❓ Q2. Can you use your basic exemption limit for STCG? ✅ Yes, but with limits: If your total income excluding STCG is below ₹2.5L (or ₹3L/₹5L depending on age) , the unutilized part of the exemption gets adjusted against STCG . ⛔ No rebate under Section 87A is available for STCG —even if your total income is ₹12L or less. 💡 Example: A 30-year-old with ₹2L salary and ₹1L STCG: ₹50,000 unused exemption → STCG taxable = ₹50,000 Tax = ₹10,000 (20%) ❓ Q3. What a...

  💸 Crypto Taxes in India: Everything You Must Know (Before Your Next Trade) Q1. What’s the tax rate on crypto in India—flat or flexible? A: It’s flat —and heavy! A 30% tax is levied on all profits from selling Virtual Digital Assets (VDAs) —which includes Bitcoin, Ethereum, and NFTs — regardless of your income bracket . 🧾 Quick Example: Sell Ethereum for a ₹1,00,000 profit? You owe ₹30,000 to the taxman—even if you’re in the 10% slab otherwise! 🔍 Key Insight: Crypto profits are not treated as capital gains—they’re taxed under "Income from Other Sources." Q2. Can I set off losses from crypto? A: Nope. If you lose money on one crypto and gain on another— you can’t offset the loss. ❌ No set-off ❌ No carry-forward ❌ No cross-crypto adjustment 📉 Example: Gain: +₹5,00,000 (Bitcoin) Loss: -₹3,00,000 (Shiba Inu) Taxable Profit = ₹5,00,000 (not ₹2,00,000) 💡 Pro Tip: Losses from business or other heads can be set off against ...

  Mandatory ITR Filing Even with Zero Income: Hidden Triggers You Must Know! 📌 “I don’t have taxable income. Do I still need to file an ITR?” This is a common misconception. The truth is: even if your total income is below the basic exemption limit (₹2.5 lakh for individuals below 60), you may still be legally required to file your Income Tax Return (ITR) under several specific situations. 🔍 When ITR Filing Becomes Mandatory Despite No Taxable Income Let’s explore real-life based scenarios where ITR filing is compulsory: ✅ 1. You Are a Director in a Company or a Partner in an LLP Example: Rohan is a salaried professional who was appointed as a director in his friend’s startup (Private Limited Company) but didn’t receive any director remuneration during FY 2024-25. His total income is only ₹1.8 lakh. Still mandatory to file ITR – just by virtue of being a Director , as per Rule 12AB. ✅ 2. You Made High-Value Cash Deposits (₹1 crore or more) ...

  📘 Title: Long-Term or Short-Term Capital Gain? A Deep Dive into Real Estate Taxation with Allotment, Possession & Sale Dates 🧾 By CA Bhavesh Panpaliya | +91 8888755557 🔍 Introduction One of the most debated issues in real estate taxation is the determination of the holding period for capital gains . Especially in cases where property allotment, possession, and conveyance happen in different years, taxability under Long-Term Capital Gains (LTCG) or Short-Term Capital Gains (STCG) becomes confusing for many. Let us understand this with a real-life styled case, backed by legal provisions and judicial precedents. 🧱 Scenario in Focus A flat buyer has the following timeline: Allotment Letter : Received in 2010 from the builder. Possession of Property : Taken in 2018 . Conveyance Deed Executed : In 2024 . Sale of Property : In 2025 . Question: Will the gain be taxed as Long-Term Capital Gain (LTCG) or Short-Term Ca...

  💬 Q: What are the latest income tax slabs under the new regime? 👉 A: Under the New Tax Regime (FY 2025-26) : ₹0 – ₹4,00,000: NIL ₹4,00,001 – ₹8,00,000: 5% ₹8,00,001 – ₹12,00,000: 10% ₹12,00,001 – ₹16,00,000: 15% ₹16,00,001 – ₹20,00,000: 20% ₹20,00,001 – ₹24,00,000: 25% Above ₹24,00,000: 30% 💬 Q: Can a salaried person earning ₹12.75 lakh pay ZERO tax? 👉 A: Yes! Here's how: ✅ Income : ₹12.75 lakh ✅ Standard Deduction : ₹75,000 ✅ Net Taxable : ₹12 lakh ✅ Tax Payable : ₹60,000 ✅ Section 87A Rebate : ₹60,000 💥 Final Tax: ZERO 💬 Q: What if I earn a bit more — say ₹12.85 lakh? 👉 A: Thanks to the marginal relief , you’ll only pay tax on the extra ₹10,000—not the entire income. So, total tax = Just ₹500 + 4% cess! 💬 Q: How can Rs 18.75 lakh become tax-free under the new regime? 👉 A: By using these tax-saving tools smartly: 💡 Component 💸 Deduction/Exemption ...

  💰 Q1: Is Every Gold Sale Taxable in India? 🧾 Answer: Not always. Jewelry = Capital Asset = Taxable But personal effects like silver utensils or decorative items without stones are usually not taxable . 🔹 Example: Selling a gold chain? Taxable . Selling a plain silver thali? Not Taxable . 💎 Q2: What is Considered "Jewellery" under Tax Laws? 🧾 Answer: Includes any gold, silver, or platinum ornaments , zari work , gold buttons , diamonds , stones in furniture/clothing . 🔹 Example: ✔ Gold ring = Jewellery ✔ Diamond-studded saree = Jewellery ❌ Plain gold-thread saree without stones = Jewellery ❌ Silver spoon = Not Jewellery 🍽️ Q3: Are Silver Utensils Taxed as Jewellery? 🧾 Answer: No, if they’re plain and for household use. Only utensils with embedded stones are taxable. 🔹 Example: Silver glass = Not Taxable Silver tray with diamonds = Taxable ⏳ Q4: Why Does Holding Period Matter? 🧾 Answer: It decid...

  📆 Income Tax Return Deadline Extended: What It Means for You (FY 2024–25) An Interactive Q&A Guide to Stay Ahead of the Tax Game 1. What’s the new deadline for filing ITR for FY 2024–25? Answer: The Central Board of Direct Taxes (CBDT) has extended the due date to September 15, 2025 , from the usual July 31 , but only for taxpayers not requiring an audit —like salaried employees, pensioners, and NRIs. ✅ Quick Tip: If you're not a business owner needing an audit, this extension is for you! 2. Does this also mean I can pay my self-assessment tax later, without interest? Answer: Yes! As per experts (and backed by Supreme Court in CIT v. Prannoy Roy ), if you pay your self-assessment tax and file your ITR by September 15, 2025 , you won’t be charged penal interest under Section 234A . 💡 Think of Sept 15 as your new “July 31” this year—no interest, no penalty if you’re on time! 3. What exactly is self-assessment tax, anyway? Answer: ...

  ✅ What is the core objective of FEMA rules for NRIs? The Foreign Exchange Management Act (FEMA) governs how NRIs manage cross-border financial transactions. Its primary purpose is to regulate the flow of foreign exchange and ensure that funds sent to and from India are compliant with national interests and international financial protocols. For NRIs, it plays a vital role in managing investments, remittances, and property dealings in India. ✅ Can NRIs maintain regular savings accounts in India? No, NRIs cannot operate standard savings bank accounts in India. As per RBI guidelines, they must maintain either a Non-Resident Ordinary (NRO) account or a Non-Resident External (NRE) account to manage their finances within India. ✅ Are there restrictions on investments NRIs can make in India? Yes. While NRIs have broad investment opportunities, certain schemes are off-limits , including: Public Provident Fund (PPF) National Savings Certificat...