Due to the presence of so many components, the 80C limit gets exhausted quickly and taxpayers couldn't get benefits on many other tax-saving investments.
After the policies are being standardised as per the IRDAI directive, policyholders are getting renewal notices with higher premium even if there are no changes in age slab or the sum insured.
For a 30-year old individual opting for Rs 10 lakh Basic Sum Assured for a policy term of 15 years, the IRR would be 7.215%, which is equivalent to over 10.31% taxable FD interest.
Finance Minister Nirmala Sitharaman has announced in the Union Budget 2021-22 that PF contributions over Rs 2.5 lakh in a financial year will be taxable from the next financial year.
Under the LTC Cash Voucher Scheme, employees are allowed to purchase goods and avail services that attract GST rate of 12 per cent or more in lieu of travel.
In case of an outright ban, investors may not be able to use any bank account in India to deposit the sale proceeds after liquidation of the cryptocurrencies.
While one of the factors that motivates new investors is tax saving, investing to fulfill life goals would require investments beyond the fixed-income tax-saving instruments.
It's a matter of concern whether PPF (Public Provident Fund) contributions will also be taken into consideration while calculating the total amount of contribution.
For investment purposes in equity-oriented and debt Mutual Funds, the cut off time becomes less relevant as the units will only be allotted after the realisation of funds.
Budget 2021 Expectations: If it is made optional for people to buy vaccines to get vaccinated, most people – especially the poor – would prefer not to have it.
Budget 2021 Expectations for Income Tax: As the preparations for Union Budget 2021-22 are in the final stage, it is expected that the scope of the tax-saving investments may be increased, if not the limit.
Budget 2021 Expectations for Direct Taxes: Expectations are high as Finance Minister Nirmala Sitharaman is going to present the Union Budget amid Covid-19 pandemic.
Budget 2021 Expectations for LTCG Tax on Equities: The tax on Long Term Capital Gains (LTCG) on equities has been reintroduced in the Union Budget 2018.
Budget 2021 Expectations for Income Tax: Although, the new income tax regime has lower tax rates on income between Rs 5 lakh to Rs 15 lakh, but no tax exemptions and deductions will be available in the new regime.
Budget 2021 Expectations for Insurance Industry: While most lenders force the borrowers to insure the assets, purchased on loan for financial security, relaxations in taxes may make people take insurances voluntarily.