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.

Budget 2018 has proposed that equity-oriented mutual funds be subject to a 10% dividend distribution tax (DDT) to ensure parity with the 10% LTCG tax on growth equity mutual funds.  If you include the surcharge and cess, the rate of dividend tax is 11.648% and if you add the effect of “grossing up”, the full tax…

I am surprised at how many people assume that the 10% Equity LTCG tax introduced in Budget 2018 also applies to mutual funds. That is, they think that the Equity LTCG tax is a form of double taxation -the fund houses pay tax once and we tax again when we redeem. This is NOT true!…

The day after Budget 2018 proposed LTCG tax on equity and equity oriented mutual funds, life insurers saw an opportunity to push ULIPS as the “go to” instrument now. Abandoning mutual funds in favour of ULIPS only to avoid the LTCG tax is like undergoing chemotherapy to shave a head (Robin Williams*). In this post, I…