2 days ago

Tax Rules Clarified for Dividends, Equity Gains and Home Loans

Dividend income is added to your other income and taxed using your normal tax rate.

Senior citizens do not get a separate tax-free amount just for dividends.

However, the general basic exemption limit may mean that no tax is payable.

The limit is Rs 4 lakh under the new tax regime and Rs 3 lakh under the old regime.

The new regime may also provide a rebate when total income is no more than Rs 12 lakh, if the rules are met.

You can sell eligible investments and book up to Rs 1.25 lakh in long-term gains in a financial year without tax on those gains.

Different types of investment losses can be used against different types of gains and may be carried forward.

For a joint home loan, both owners may claim interest deductions only when their ownership and repayment shares can be identified.

Key facts

Dividend taxation: Taxed at the investor’s applicable slab rate; there is no separate dividend exemption for senior citizens.
New-regime basic exemption: Rs 4 lakh, including dividend income in total income.
Old-regime basic exemption: Rs 3 lakh, including dividend income in total income.
New-regime rebate: Section 156 rebate may provide relief when total income does not exceed Rs 12 lakh, subject to conditions.
Equity LTCG exemption: Long-term gains on listed equity shares and equity-oriented mutual funds are exempt up to Rs 1.25 lakh per financial year.
Capital-loss carry-forward: Unabsorbed capital losses may be carried forward for up to eight consecutive years if the relevant ITR is filed by the prescribed due date.
Joint-home-loan interest: Each eligible taxpayer may claim up to Rs 2 lakh based on ownership and repayment shares; the deduction is unavailable under the new regime.

financialexpress.com · 2 days ago