Finance Bill 2021 has proposed several amendments to the Lic Insurance Corporation Act 1956. Most notable among these is the 10% reservation of the LIC IPO issue size to policyholders. Here is an explanation of the associated rules. What exactly does the finance bill say? Extract from Page 108 of the bill regarding various categories of…

Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. Here is why this rule does not apply to the public provident fund (PPF). The change proposed in Budget 2021 is an inclusion to clause(11) and clause (12) of section 10 of the income tax. Clause 11…

Finance Bill 2020 has proposed that contribution above 2.5 lakhs by employees into recognised provided funds will be taxed. If an excess contribution is made in one financial year, will it be taxed only in that year or in subsequent financial years until maturity or withdrawal? While a precise answer to this is not available…

From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021. Here is a simple illustration of how the tax works: How employee contributions over 2.5 lakhs get taxed like an FD. Many have…

We had earlier reported that the Finance Bill 2021 has proposed that employee contributions over 2.5 lakh will be taxed as per slab. Here is a simple illustration of this works. Update 1: Find out taxable EPF Interest with this calculator <= This is the exact calculation Update 2: The Central Board of Direct Taxes has…

Budget 2021 has only one offering for senior citizens. If some conditions are met, those aged 75 and above need not file income tax returns. They have to pay the necessary tax but need not file returns. The conditions for exemption from filing ITR from 1st April 2021 are: The senior citizen should be a…

Finance Bill 2021 has extended the provisions of the five lakh deposit insurance. Earlier it applies to only banks that went bust (liquidation). From 1st April 2021, the insurance will also apply to banks placed under temporary restrictions by the RBI. Investors can redeem up to Rs. five lakh from banks under stress. This may…

From 1st April 2021 onwards, the interest on any contribution above Rs. 2.5 lakh by an employee to a recognised provident fund is taxable as per the provisions of the Finance bill 2021 announced today. Update: Find out taxable EPF Interest with this calculator That is, if the total employee PF contribution (mandatory + voluntary) contribution is…

Finance Bill 2021-22 has proposed to tax gains from ULIP with a premium of more than Rs. 2.5 lakh per year to remove the disparity relative to mutual funds. This means from Feb 1st 2021 if you buy a new  ULIP with a premium of more than Rs. 2.5 lakhs the maturity proceeds will be…

The IT department has clarified that TDS will be applicable to mutual fund dividends only and not capital gains

“Will you choose the new tax regime or stick to the old one?” Here is what 3216 Facebook and Twitter users voted. Also, did the govt miss a trick while introducing this new regime?

Does the finance bill 2020 propose to deduct ten per cent tax on mutual fund capital gains (along with dividends) at source? An explanation.

Is the interest earned from PPF, EPF, SSY Taxable in new tax regime?

These are the tax deductions retained in the New Tax regime (section 115BAC)

If you choose the new tax regime (section 115BAC) you cannot avail the following deductions.