Tax & Compliance Advisory

Capital gains planning is a year-round discipline, not a post-sale computation. The tax on a capital gain is substantially determined before the exit — by the holding period at the time of sale, the nature of the asset, the tax bracket of the seller, and the reinvestment options available. Post-Budget 2024, the capital gains tax framework has been simplified but the planning complexity remains: LTCG on listed equities and equity mutual funds is taxed at 12.5% above ₹1.25 lakh exemption; STCG on listed equities at 20%; LTCG on property at 12.5% without indexation (with a grandfather clause for pre-July 2024 acquisitions); LTCG on debt instruments, gold, and unlisted assets at 12.5% after 24 months. Each asset class requires a distinct planning approach. For equity portfolios, the key planning levers are: harvesting the ₹1.25 lakh annual LTCG exemption on listed equities by booking profits before year-end and immediately reinvesting; timing exits around the 12-month LTCG threshold; using STCG losses to offset STCG gains; and coordinating capital gains across spouses and family members who hold the same securities. For property, the reinvestment exemptions under Sections 54, 54EC, and 54F provide significant deferral opportunities. We work with each client throughout the year — not just at filing time — to model the tax consequences of planned portfolio changes and execute exits in the most tax-efficient sequence.

High-net-worth individuals have income tax returns that are materially more complex than a standard salaried ITR — involving multiple heads of income (salary or business, house property, capital gains from multiple asset classes, other sources), pass-through income from partnerships or LLPs, income from trusts, directorial remuneration, and dividend income from closely held companies. The capital gains schedules alone — Schedule CG — require precise computation of gains from equities, debt mutual funds, property, gold, and unlisted shares, each at its applicable rate, with the correct cost basis, holding period, and exemption claim. For families filing together, coordinating the tax positions across spouses, minor children (whose income is clubbed under Section 64), and HUF entities requires a consolidated view of the family's aggregate tax position before filing any individual return. We prepare and file ITRs for HNIs, business families, partnership firms, HUFs, and trusts — with complete Schedule CG computation, all applicable deductions, advance tax computation and payment advisory, and representation before the Income Tax Department for any notices or assessments arising from the filing.

Residents of India who hold financial assets outside India — bank accounts, securities, business interests, insurance policies, property — must disclose these in their annual ITR under Schedule FA (Foreign Assets). The income from these assets must be separately disclosed under Schedule FSI (Foreign Source Income), with the applicable DTAA treaty provision and any tax paid in the foreign country claimed as a Foreign Tax Credit (FTC). Non-disclosure of foreign assets is not treated as a tax compliance lapse — it is treated as a potential violation under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which provides for a flat 60% tax plus 90% penalty on undisclosed foreign assets, and criminal prosecution in severe cases. Schedule AL (Assets and Liabilities) must be filed by all taxpayers whose total income exceeds ₹50 lakh — disclosing all movable and immovable assets (property, vehicles, jewellery, financial assets, art) along with all liabilities. For taxpayers with business income, the balance sheet already captures this; for individuals, Schedule AL requires a comprehensive personal assets audit. We handle the complete foreign asset and disclosure compliance: Schedule FA preparation with correct asset classification and peak balance computation, Schedule FSI with DTAA treaty claims and FTC calculation, Schedule AL preparation for eligible taxpayers, and Liberalised Remittance Scheme (LRS) annual remittance disclosure.