Wealth & Investment Planning

What a bonus on a with-profits life policy is, how regular, interim and terminal bonus differ, and what is guaranteed versus declared, under IRDAI's 2024 rules.

A partition of a Hindu Undivided Family has no tax effect until the Assessing Officer records it, and a partial partition is not recognised. What Section 315 of the Income-tax Act 2025 (formerly Section 171) requires.

HUF vs private discretionary trust for Indian families: separate-person status, Section 164(1) MMR taxation, partition rules and what ITA 2025 in force since 1 April 2026 changes.

The most persistent piece of advice in Indian family WhatsApp groups is that opening a Hindu Undivided Family gives you a second taxpayer with its own ₹4 lakh exemption and its own slab ladder. The structure is real. What the advice leaves out is Section 64(2), which exists precisely to stop the manoeuvre being described: when a member converts self-acquired property into HUF property, the income from that property continues to be taxed in the transferor''s hands, not the HUF''s. You keep the tax bill and permanently lose control of the asset. This article works through what a HUF actually gets under ITA 2025 (the ₹4 lakh exemption, but not the Section 87A rebate), where Section 64(2) bites and where it does not, the second-generation income principle, the residency trap that catches NRI Kartas, two worked examples showing a ₹0 saving versus a lawful ₹1.84 lakh saving, the daughters-as-coparceners position after Vineeta Sharma, and why total partition under Section 171 is the only exit that has any tax effect.

When an employer withholds shares at vest to cover TDS, the tax paid covers only the perquisite — capital gains tax on the sale is separate. Reconcile using FMV at vest as your cost basis, check Form 26AS for TDS deposited, and pay the balance capital-gains tax via advance tax or self-assessment.

We have found no CBDT guidance specific to unvested RSUs on Schedule FA; on the firm's reading, disclose them as a beneficial interest at nil value. Vested shares go in Table A3 with peak value for the calendar year ending 31 December.

Employer TDS on an RSU perquisite may not cover your true tax at higher CTC bands. If total liability after TDS exceeds ₹10,000, pay advance tax on the shortfall by 15 March. Aisha's ₹8 lakh RSU vest against salary-only TDS shows the shortfall; interest under Section 234B applies if advance tax is below 90% of assessed tax.

US withholding on RSU vest — typically 30% for non-resident aliens, reduced under the India-US DTAA — is reported on IRS Form 1042-S. In India, claim a foreign tax credit in Schedule TR and Form 67, limited to the lower of the Indian or foreign tax on that income. File Form 67 before the ITR due date.

US RSUs for Indian residents: convert vest-date FMV at the RBI/telegraphic-transfer buying rate to get the perquisite; the sale gain uses the same INR cost basis. Disclose foreign shares in Schedule FA at peak balance, and file Form 67 before the ITR due date to claim the foreign tax credit for US withholding.

RSUs are taxed in two stages: at vest, the FMV on vest date is a perquisite under Section 17(2)(vi) taxed as salary with employer TDS; at sale, the gain over FMV at vest is capital gains. Ananya's 100 RSUs at $40 vest and $55 sale after 14 months show how the s.49(2AA) stepped-up cost prevents double taxation.

ESOP perquisite = (FMV on exercise date − exercise price) × shares exercised, valued under Rule 3(8) of the Income-tax Rules. Vikram's 500 ESOPs at ₹100 exercise against ₹850 FMV produce a ₹3,75,000 perquisite reported in Form 16 Part B — and in Form 12BA when the perquisite exceeds ₹1 lakh.

An ESPP's purchase discount is taxed as a perquisite at purchase: (FMV at purchase − ESPP price) × shares, under Section 17(2)(vi). The later sale is a separate capital gain using FMV at purchase as cost. Kavitha's $20 per-share discount is salary; her $30 gain six months later is short-term capital gains.

Any ESOP or RSU income makes ITR-1 invalid — capital gains and foreign assets require ITR-2 at minimum. The ITR-2 checklist: Schedule S for the perquisite, Schedule CG with cost at FMV under s.49(2AA), Schedule FA for foreign shares, Schedule TR for the foreign tax credit, and Form 67 filed before the ITR.

Section 49(2AA) sets the cost of acquisition of RSUs and ESOPs at the FMV on the allotment/vest date — the same value already taxed as a perquisite. This prevents double taxation: the capital gain is sale price minus FMV at vest, not the full sale price. Enter this cost in ITR-2 Schedule CG.

Family business succession demands more than emotional handovers. Section 171 HUF partitions, properly structured buy-sell agreements, and Section 47(xiii) exemptions are the legal and tax toolkit that protects wealth across generations while minimizing capital gains tax.

High net-worth individuals face significant capital gains tax when selling property or unlisted shares. Section 54, 54EC, and 54F offer legitimate exemptions, but the rules are strict and the March 31 deadline is unforgiving. This guide explains the harvesting window and how to lock in relief before year-end.

High-net-worth individuals in India face critical choices between wills and trusts, compounded by gift tax implications under Section 56(2)(x). A skilled CA must lead your estate planning strategy to protect your wealth, minimize tax leakage, and ensure smooth succession.

ESOPs are a powerful wealth-building tool for startup employees and founders, but the tax code can turn them into a liability if you don't plan ahead. Section 17(2) perquisite tax and Section 80-IAC deferral rules need surgical precision to maximize wealth retention.

Portfolio Management Services attract capital gains tax in India. When your trading turnover exceeds Rs.10 crore, Section 44AB audit becomes mandatory--and Form 3CD disclosures carry heavy compliance weight. Here's what portfolio managers and high-net-worth individuals must know.