Question 1

Should I choose the old or new tax regime for FY 2025-26?

Accepted Answer

The new regime is the default and offers lower slab rates with a higher rebate (income up to ₹12 lakh effectively tax-free after rebate for AY 2026-27) but disallows most deductions. The old regime is usually better if you claim large 80C/80D/HRA/home-loan-interest deductions. Our Old-vs-New calculator compares both on your actual numbers.

Question 2

How are capital gains on listed shares taxed currently?

Accepted Answer

Short-term gains (held ≤12 months) on listed equity with STT are taxed at 20% under section 111A; long-term gains above the ₹1.25 lakh annual exemption are taxed at 12.5% under section 112A without indexation. Rates were revised by the Finance Act 2024 — we apply the date-specific rules to your transactions.

Question 3

How is ESOP income taxed in India?

Accepted Answer

ESOPs are taxed at two stages: as a perquisite (salary) on the difference between fair market value and exercise price at the time of exercise, and as a capital gain on the difference between sale price and FMV-at-exercise when sold. Eligible DPIIT-recognised startups can defer the perquisite tax. Our ESOP calculator models both stages.

Question 4

What is angel tax and does it still apply?

Accepted Answer

Angel tax under section 56(2)(viib) taxed share premium received above fair market value. The Finance Act 2024 abolished section 56(2)(viib) from AY 2025-26, removing angel tax for investments made on or after 1 April 2024. We help document valuations and DPIIT recognition for legacy periods.

Question 5

How are crypto and other virtual digital assets taxed?

Accepted Answer

Income from transfer of VDAs is taxed at a flat 30% under section 115BBH, with no deduction except cost of acquisition and no set-off of losses. A 1% TDS under section 194S applies on transfers above the prescribed threshold. We handle computation, TDS and disclosure.

Question 6

What is the time limit for reopening an assessment under section 148?

Accepted Answer

Following the 2021 and 2024 amendments, the normal reassessment window is three years from the end of the relevant assessment year, extended to five years (earlier ten) where escaped income represented by an asset/expenditure/entry is ₹50 lakh or more, subject to the section 148A inquiry procedure.

Question 7

Do NRIs have to file an income-tax return in India?

Accepted Answer

An NRI must file if Indian-sourced income exceeds the basic exemption limit, to claim a refund of excess TDS, or to carry forward losses. Foreign assets disclosure in Schedule FA applies to residents, not NRIs. We also advise on DTAA relief and Form 67.

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