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Income Tax

506 articles on Income Tax, authored by the Finin2min editorial team. Page 9 of 13.

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Income Tax
Employer-Subsidised Home Loan Interest: How This Benefit Is Taxed as a Perquisite

A handful of employers, particularly larger companies and PSUs, offer housing-related financial support: a loan at a below-market interest rate, or a subsidy…

Income Tax
Earning From Private Tuitions or Coaching Classes: How Is This Income Taxed?

Income from private tuitions is one of the most common, and most commonly under-reported, sources of side income in India. Whether it is a school teacher…

Income Tax
Own a Property Abroad? How Rental Income From Foreign Real Estate Is Taxed for Indian Residents

An apartment bought during years working abroad, now rented out while its owner has moved back to India, creates a tax obligation that many returning…

Income Tax
Converting Preference Shares Into Equity Shares: How Are Capital Gains Calculated?

Convertible preference shares are designed from the outset to eventually become equity shares, on a pre-agreed ratio and timeline. The moment of conversion…

Income Tax
Reclaiming Shares and Dividends Transferred to IEPF: What Are the Tax Implications?

Shares bought decades ago and forgotten, dividends that were never collected because of an old address or a closed bank account, these do not simply vanish…

Income Tax
Keyman Insurance Policy: How Premiums and Maturity Proceeds Are Taxed for the Company and the Key Person

Many businesses depend disproportionately on a handful of key individuals, a founder, a top salesperson, a technical expert whose departure or death could…

Income Tax
Section 89A Relief: How Income From Your Foreign Retirement Account (401k, IRA) Is Taxed When You Return to India

Professionals who spend years working abroad often build up retirement savings in accounts like a US 401(k) or IRA, structures where the home country defers…

Income Tax
Foreign Nationals Working in India: How Are Expatriate Employees Taxed?

A multinational sends an employee on a two-year assignment to its India office, with salary continuing to be paid into a bank account back home. The employee…

Income Tax
Sold Property Below the Stamp Duty Value? Why the Tax Department May Still Tax You on the Higher Figure

A property changes hands at a price below the government's stamp duty valuation (often called the circle rate), perhaps because the seller needed a quick sale…

FEMA & International Tax
Receiving a Cash Gift From an NRI Relative: Is It Taxable, and How Should It Be Received?

A son working abroad wires a substantial sum to his parents in India to help with a medical expense or a home renovation. A sister settled overseas transfers…

Income Tax
Got Paid Not to Compete? How Non-Compete Compensation Is Taxed

When a business is sold, or a senior professional exits a firm, it is common for the buyer or the firm to pay a separate sum specifically in exchange for the…

Income Tax
Selling Your Professional Practice? How Goodwill Is Taxed When a Doctor, CA or Lawyer Exits

A doctor who has spent thirty years building a loyal patient base, or a chartered accountant with a roster of long-standing clients, often finds that when the…

Income Tax
Renting Out Your Truck or Commercial Vehicle: Which Head of Income Applies, and Can You Use Presumptive Taxation?

An individual who owns a truck or two and hires them out to transport companies, or someone who has invested in a fleet of a few goods carriages run by hired…

Income Tax
Bought Digital Gold on a Payments App? Here Is How Selling It Is Taxed

Buying a few grams of gold through a payments app, with the gold supposedly held in a secure vault on the buyer's behalf, has become an extremely popular way…

Income Tax
Lending Out Your Shares Through the SLB Mechanism: How Is the Lending Fee Taxed?

An investor holding a large quantity of a particular stock for the long term, with no intention of selling soon, can put those idle shares to work through the…

Income Tax
Got Paid to Vacate a Rented Flat? How Surrender of Tenancy Rights Is Taxed

In cities with old rent-controlled buildings, it is common for landlords or developers to pay long-standing tenants a substantial lump sum to vacate, often as…

Income Tax
Received Enhanced Compensation for Acquired Land, With Interest? Here Is How the Interest Portion Is Taxed

When land is compulsorily acquired by the government and the landowner disputes the initial compensation amount, court proceedings can take years, sometimes…

Income Tax
Selling Carbon Credits: How Is the Income Taxed for Indian Businesses?

A manufacturing unit that invests in cleaner technology, a renewable energy project, or a forestry initiative can generate carbon credits, tradable…

Income Tax
Earning Through Affiliate Links and Referral Programs? How This Income Is Taxed

A blogger who earns commissions every time a reader clicks through an affiliate link and makes a purchase, or someone who shares a referral code for a…

Income Tax
Is a Scholarship Taxable? How Educational Scholarships Are Treated Under Income Tax

A student who receives a scholarship, whether from the government, their educational institution, a private trust, or a corporate CSR programme, naturally…

Income Tax
Received Compensation From a Motor Accident Claim? Here Is the Tax Treatment

A road accident victim, or the family of someone who has passed away in one, who eventually receives a compensation award from a Motor Accident Claims Tribunal…

Income Tax
Won a Lawsuit or Settled Out of Court? How the Money You Receive Is Taxed

Whether it is a business that wins damages from a supplier for breach of contract, or an individual who settles a dispute with a builder, an employer, or a…

Income Tax
Running a Beauty Parlour or Salon? How Your Income Is Taxed, and Can You Use Presumptive Taxation?

Whether it is a small neighbourhood beauty parlour, a unisex salon, or a home-based service offering grooming and styling appointments, this is, for tax…

Income Tax
Running a Dairy or Poultry Farm? Why This Income Is Not 'Agricultural Income' for Tax Purposes

Agricultural income enjoys a favourable position under income tax law, broadly exempt from tax. It is a common assumption that any income connected with…

Income Tax
Running a Home Bakery or Cloud Kitchen? Here Is How Your Income Is Taxed

What often starts as baking cakes for friends and family, or cooking a few extra meals to sell to neighbours, can grow into a steady home bakery or cloud…

Income Tax
Switching Between Mutual Funds? Why It Is a Taxable Event, Even Without Withdrawing Cash

Many investors switch mutual funds for perfectly sensible reasons: moving from a regular plan to a lower-cost direct plan of the same scheme, consolidating…

Income Tax
Earning as a Yoga or Fitness Instructor? How Your Income Is Taxed

A yoga teacher running batches out of a studio, a personal trainer who travels between clients' homes, or a fitness instructor who works across multiple gyms…

Income Tax
Stridhan: Are Gifts and Jewellery Received by a Woman at Her Wedding Taxable?

Indian weddings often involve substantial gifts of jewellery, cash, and other valuables given to the bride by her parents, in-laws, relatives and friends…

Income Tax
Subscribed to a Chit Fund? How the Dividend and Prize Money Are Taxed

Chit funds remain a popular savings and borrowing mechanism in many parts of India, a group of subscribers contribute a fixed monthly amount, and each month…

Income Tax
Running a Drone Photography or Videography Business? How This Income Is Taxed

Drone technology has opened up a niche but growing line of work, aerial photography and videography for weddings and events, drone-based surveying for real…

Income Tax
Working as a Freelance Translator or Interpreter? How Your Income Is Taxed

Translators and interpreters often work across borders by the nature of the job itself, translating documents for an overseas law firm, interpreting at a…

Income Tax
Renting Out a Houseboat or Vacation Home on Airbnb? How This Income Is Taxed

From houseboats in Alleppey and Kashmir to cottages in the hills and city apartments listed on Airbnb, short-term vacation rentals have become a meaningful…

Income Tax
Earning Money by Putting Ads on Your Car? How This Income Is Taxed

Several companies now offer to pay car owners a monthly amount in exchange for wrapping their vehicle in branded advertising and driving around as usual. It…

Income Tax
Selling a Timeshare or Vacation Ownership Membership? How the Gain Is Taxed

Timeshare and vacation ownership memberships, where a buyer pays an upfront amount (and often ongoing maintenance fees) for the right to use resort…

Income Tax
Earning From Paid Surveys, Reward Apps or Microtask Platforms? Is This Income Taxable?

Survey apps that pay a few rupees for answering questions, reward platforms that convert points into cash or vouchers, and microtask websites that pay small…

Income Tax
Earning From Google AdSense or Blog Sponsorships? How Blogging Income Is Taxed

Long before YouTube and Instagram, blogging was the original creator economy, and for many bloggers it remains a steady source of income through display…

Income Tax
Running a Paying Guest (PG) Accommodation or Hostel? How This Income Is Taxed

In cities with large student and working-professional populations, running a Paying Guest (PG) accommodation or a hostel has become a common small business…

Income Tax
Selling Your Photos on Stock Photography Websites? How This Income Is Taxed

Photographers and videographers, both hobbyists and professionals, increasingly upload their work to stock content platforms, earning a small royalty each time…

Income Tax
Selling an Online Course, E-book or Digital Template? How This Income Is Taxed

Creating an online course, writing an e-book, or designing digital templates (spreadsheets, presentation decks, design assets) and selling them through your…

Income Tax
Earning Royalties as a Songwriter, Composer or Music Producer? How This Income Is Taxed

Songwriters, composers, and music producers earn income through a web of royalty streams: streaming royalties from platforms like Spotify and YouTube Music…