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.

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