How to insure your bank FDs up to Rs 65 lakh for free indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.
Synopsis
“Instances have come to the notice where high net worth individuals are claiming exemption under this clause by investing in ULIP with a huge premium. Allowing such exemption in policy/policies with huge premium defeats the legislative intent of this clause. The intention was to provide benefit to small and genuine cases of life insurance” says the budget memorandum.
Getty Images
The advantage that ULIPs had over equity mutual funds (MFs) will no longer be there as Budget 2021 has brought the gains made from ULIPs with premium over Rs 2.5 lakh on par with equity mutual funds. So gain from such ULIPs is treated as capital gain just like equity MFs and will be taxed accordingly.
Budget 2021 Expectations: Will benefit of standard deduction be extended to taxpayers under the new tax regime? financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.