LIC IPO 10% reserved for policyholders: rules explained

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…

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Is the interest from PF contributions above 2.5 lakh taxable every year?

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…

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EPF Interest on employee contributions above 2.5 lakh now taxable!

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…

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