While you choose long term bonds issued by corporate entities or the Government for your long-term regular income, do you know that the interest you receive from some of these is also taxable?

It sounds similar since both can mean that you don’t pay tax and hence, you save tax, however, there is a difference in tax deduction versus tax free or tax exemption.

Short term capital gains arising from equity-oriented investments are taxed differently than such gains if they come from investing in debt securities like bonds and debt mutual funds. The short-term holding period is also defined differently.

Capital gains arise when you sell an investment at a price higher than its original cost. While gains are the objective of investing, in certain types of investments the returns come only in the form of interest income or dividend...

As an NRI, you might be keen to capitalize on investment opportunities back home. By becoming aware of the tax nuances, you can also get the best value for your investments.

If you are unsure about what you can claim, deduct and expense before arriving at your tax payable figure, then here are three points to help you out.

No tax is deducted at source by the mutual funds for capital gains and investor is therefore liable to pay taxes, if any. Knowing how to go about paying these taxes can make your life a lot less complicated.

Earnings from debt funds can come either in the form of dividends or capital gains or even both. While dividends are tax free after you have received them, capital gains are taxed post being realised. Here is how you add the capital gains to your tax return filing.