The Ultimate Indian Tax-Saving Masterclass (Salary, Business & Investments) | The 1% Club Show Ep62

"If you fall into this and you are earning your income as a professional income. Okay. Okay. There is a section called 44 ADA. In that you just need to pay tax on 50% of your income. So if you're earning 24 lakh rupees in this financial year which is start from 1 April 25 and your income is 24 lakh rupees you pay 50% which is 12 lakh 12 that is not fully exempt. Interesting. So if you are a professional no tax on 24 lakh rupees of income. Of course, if you are a specified professional and by the way, this is not only up to 24 lakh. If your income is up to 75 lakh rupees, okay, you can take benefit of this section."

"If your CTC is 15 lakh rupees, you need five lakh 93,000 of deduction and exemption to Break even... The moment your deduction and exemptions is over and above this 5 lakh 93,000 limit for that 15 lakh salary old is beneficial or otherwise new. Now let me go forward and tell you one or two more example. If your CTC is 20 lakh r you need deduction and exemptions okay of roughly 7 lakh 58,000 to break even a okay so if I have more than that then new old is old is beneficial so you just need two figures and 60 seconds right and the last but not the least you are mentioning about the 20 someone is having 24 lakh and above it right correct you need 8 lakh 50,000s of deduction or allowances to break even which means if you have more than that old is beneficial otherwise new that's it"

"few of our client got let's say SUV worth 20 lakh rupees over a period of 3 years the tax saving would be 10 lakh rupees... In that car lease Sharon we have seen in some of our clients 50% of your car cost you can save in taxes... not only that Now I can also claim if I have a driver driver salary fuel and not only that even typically if you understand that if I'm buying a 20 lakh rupees of a car okay the insurance would be in the range of 50,000 correct when I can claim this and all this will not form part of my taxable salary and that's why Shan I'm saying we have a client where we able to save 10 lakh rupees in taxes in 3 years"

"if you have any education loan Right. Up to 8 years Sharon you can claim unlimited interest you are paying to bank and financial institution for that loan. Can this be applicable even for my kids if I'm taking an education loan for them? Of course, for your spouse your kids if you are a joint if you're jointly taking this loan you can claim this on behalf of them."

"on rental income you will not pay any tax or you will pay zero tax up to 17 lakh rupees... Let's say you are getting a 17 lakh rupees of a rent. Now you get a 30% standard deduction. Oh wow. Okay. Flat. You don't need to give any proof... So out of 17 lakh let's reduce the 17 30% is what? Five lakh 10,000. Correct. So your income is 11 lakh 90,000. And because it falls below 12 lakh and I'm assuming that you don't have any other income."

"Now you are taking let's say 2 three cr rupes of loan to buy this property or any kind of a loan. You can even deduct the interest you are paying for this loan even in the new regime. Sharon these people are not aware. Oh in the new regime I can take tax deduction on the interest component of my home loan. Right? If it's a let out property let out mlab I'm not staying there... So let's say you are paying 7 to 8 lakh rupees of a interest for this one property. 1 C property and I'm you give that to me on rent and I'm paying you hypothetically let's say 10 lakh rupees of no it'll be around 3% so three lakhs three lakh then you can claim three lakh rupees of interest not all if I'm paying seven lakhs interest and you're giving me three lakh rent right then only three lakh you can adjust why because you can maximum make it to zero you can't take it to negative in new regime so 7 minus three so four no yeah so four the four lakh so seven lakh rupees is the interest which is my outgo So right and three lakh rupees is a rent. So my tax deduction will be 3 - 7. So three lakh rupees you will be able to set off three lakh be able to set off. Huh? Set off. Yeah, that's it. So four lakh which means your taxable income from house property is zero."

"these guys usually take proprietorship okay and if they're taking that up to 75 lakh rupees of income they don't need to maintain any kind of a books and accounts they can claim 50% of their income as tax as tax exemplary you can say you can show it that as a taxable income okay so if I'm earning 50 lakh rupees I can show 25 lakh rupees my income and on 25 lakh I'll pay tax rest 25 lakh is assumed because this is called presumptive taxation assumed to be your expenses so I don't have to show any proof nothing right this is for a specified professional okay"

"if you are doing tax evasion 100 to 300% of tax penalty can be applicable... If you are let's say trying to evade 1 lakh rupees of tax you might need to pay three lakh rupees as the penalty."

"if you have not shown your foreign assets or foreign esops or even if you have some foreign income they can go even back to 10 years and the penalty here is 10 lak rupees 10 lakh rupees what 10 lakh rupees is the penalty because you have not shown your foreign esop for an equity holding because this is considered as a black money if I'm not disclosing there is a schedule FA in income tax."

"People are saying that you go to Dubai. Okay. And now sell that because if you are a Dubai NRI, Indian NRI staying in Dubai, there is a DTAA, double tax avoidance agreement, okay? Which says on your mutual fund in capital gain income, you don't need to pay any tax in India. You need to pay in Dubai. But Dubai don't have any tax. So zero tax. Yeah. But these people are saying but I'm saying be watchful. So let's say let's say for example that today I have 50 lakhs and I'm 30. By the time I turn 60 let's say I have 10 crores and I'm about to retire. Now at the time of selling this my taxation is coming to let's say 2 crores. No I don't want to pay 2 crores. So what people are saying is that you go to Dubai stay there for 6 months book the profit come back by paying zero tax. Now you're saying this is not possible. This is not possible. Why?"

"there is a section named 504F. Okay, which says if you have any kind of a long-term capital gain any kind of a long-term capital gain which means if you staying invested in let's say mutual fund and equity for just more than 12 months. Now let's assume that like you are giving example you have invested 50 lakh and after 10 years it is hypothetically is let's say 2 cr. Okay, and you have a gain of 1 cr. Okay. Okay. Now 1 cr rupees of gain and you say this I don't want to pay tax. But as a part of your overall financial planning you want to buy a house. So if you are selling all these things which is long-term capital asset of your mutual fund or shares and now you are buying a house worth the same amount you pay zero tax. Oh interesting right this is section 54f."

"The other section which is less known is that 54F. In this you can sell any asset. So for example let's say somebody's selling 1 cr rupes of gold right now. Okay, Because gold is at 1 lakh rupees right and somebody has invested 20 30 years back or their father or mother somebody has invested this right now at out of this 1 cr 50 lakh rupees is gain now you want to buy a house sell that gold okay and buy the house on this 50 lakh rupees of gain you pay zero tax oh wow"

"every year you can save 15,625 rupees of taxes and this is not for ultra ha each and every individual watching this podcast can start saving from this year to be precise 15,625 rupees of taxes every year. Every year okay how to do that?... let's say you are investing in a mutual fund right now 10 lakh rupees okay okay after let's say 12 months let's say after 1 and a half years 15 months that is becoming 11 lakh 25,000 hypothetically assume that 10 lakh invested now becoming 11 lakh 25,000 rupees now you sell this mutual fund okay and reacquire it again if you want... you sell it right now and buy it back... because every year one lakh 25,000 of long-term capital gain is exempt per pan Per pen card. So by doing this transaction you will be able to save one lakh on one lakh 25,000 at 13% tax... you will save 13% of tax every year by doing this. Why 13% of 1 lakh 25,000 right? 16,000 this is what 15,625 is the figure if you do that math."

"Meaning if I have lost some money in stocks, Mhm. I can save taxes on it. How? How?... I will book the loss when I say book the loss to set it off against this gain of gold I have a gain in gold okay and I some loss. Oh, you're saying I can match I can adjust with each other. Right. Stocks and gold can be adjusted with each other. There is no restriction on cross asset classes of adjustment... your cross adjust cross asset class adjustment of profit and loss is possible. Only one exceptions that your long-term capital loss can be only adjusted against long-term capital gain. Irrespective of this everything else can be adjusted against each other."

"what about my trading loss that also can be adjusted FN or trading loss? FN or trading loss can also be adjusted against if because that's that's considered as a normal business and professional loss and not a capital gain still if you are having some losses in FNO which 93% of the Indians has. Yeah, as per the s data. Correct. So they can use this loss to offset again any of the gain. If you have in mutual fund gain or if you have a gold gain, you can offset this to minimize your tax liability."

"You can carry forward for eight financial year. Next eight years you can carry forward and in future whenever again you have a profit you can adjust this."