For most people, saving tax is almost a national obsession. Every earning season begins with the same question: “How do I save tax?” But according to CA Neeraj Arora, the answer may not always lie in avoiding tax — sometimes, paying it strategically can make you wealthier. In a recent discussion on capital gains and tax-saving instruments, Arora explained how mutual fund investing can outperform traditional tax-saving tools like 54EC bonds, while staying fully compliant with income tax laws. Advertisement

Understanding Capital Gains Tax

When you sell a property, the profit earned is called a capital gain. If the sale happens within 24 months, it’s treated as a Short-Term Capital Gain (STCG) and taxed as per your income slab. If it’s sold after 24 months, the profit becomes a Long-Term C

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