Section 80D offers tax breaks on health insurance premium paid for self, spouse, children and parents. You can avail of tax breaks at the time of filing returns, even if you have missed out on claiming these while submitting tax-saver investment proofs to your employer
Income tax return-filing forms ITR-1 and ITR-2 are the key documents relevant for salaried individuals. Ensure that you select the right form and make all disclosures while filing the return for assessment year 2023-24 (financial year 2022-23)
Does the tax on ULIPs reduce their edge over mutual funds?
Purely from an income-tax angle, ULIPs with premiums lower than Rs 2.5 lakh may work out better than mutual funds February 15, 2021 / 09:06 AM IST
When Union Budget 2018 introduced a long-term capital gains (LTCG) tax on profits made from equity-oriented investments, it handed unit-linked insurance plans (ULIPs) a distinct advantage. Despite a majority of the investments flowing into their equity funds, ULIPs escaped this tax due to their status as life insurance policies.
Union Budget 2020, however, has sought to fix this ‘arbitrage.’ Redemption or maturity proceeds of ULIPs with aggregate annual premiums of over Rs 2.5 lakh will now be subject to capital gains tax, just as mutual funds are. However, if the policy pays out a claim due to the policyholder’s demise, the dependents will not have to pay any tax.
Budget 2021: ULIP maturity proceeds not tax-free anymore
Union Budget 2021 has withdrawn tax-free maturity on fresh ULIPs if annual premiums exceed Rs 2.5 lakh February 01, 2021 / 05:56 PM IST
If you plan to invest in unit-linked insurance policies (ULIPs), merely for their tax-free maturity proceeds, you need to think again.
Budget 2021 has decided to roll back this exemption to ULIPs if their annual premiums exceed Rs 2.5 lakh. This will be applicable to ULIPs bought on or after February 1, 2021. “Such ULIPs will now be treated as capital assets and profits and gains from such ULIPs will now be taxable as capital gains,” says Mayur Shah, EY India.
What Budget 2021 means for taxpayers, investors and consumers
From bringing tax parity between ULIPs and mutual funds to taking away traditional tax saving avenues of the well off, Budget 2021 aims to strike a balance Moneycontrol PF Team February 02, 2021 / 10:18 AM IST
Budget 2021 has touched a broad canvas of people. Here are the key takeaways for the investor, taxpayer, depositors and common consumers.
For taxpayers
Senior citizens benefit
There is good news for senior citizens. For those above the age of 75, filing income-tax returns is not required, effective financial year 2021-22. But there is a small caveat. Those who earn income from pension and interest alone are exempt. But if you have an income from capital gains, investments in direct equities or even mutual funds, then you have to file your income-tax returns as usual.