In response to our recent article – Tax deductions available in the New Tax Regime from 1st April 2023 – a reader wants to know if the employer contributions made to the EPF are taxable in the new tax regime from 1st April 2023. Employer contributions to the EPF are not part of an employee’s salary….
Continue reading →This article explains how to calculate the revised EPS pension assuming the contribution is 8.33% of their basic + DA. After the recent supreme court ruling on the Employee Pension Scheme (EPS), EPFO subscribers, as of 1st Sep 2014, can retrospectively contribute 8.33% of their basic + DA to the EPS via a deduction from…
Continue reading →A reader asks, “Sir, thank you for the old tax regime vs the new tax regime calculator. It is really easy and useful. I realised that the new regime is better from the next financial year unless someone has a huge HRA or home loan interest. However, if I wish to buy a house in…
Continue reading →The following is a list of tax deductions available in the new tax regime from 1st April 2023 (after the budget 2023 announcement). Family Pension: A deduction of 33.33% or Rs. 15000, whichever is less, is allowed from the family pension in the new tax regime from 1st April 2023. A standard deduction of Rs….
Continue reading →Budget 2023 has introduced a tax rebate in the new tax regime, and with this, the effective tax-free limit is now Rs. 7 lakhs. Here is how this works. We use the New Tax Regime vs Old Tax Regime Calculator for this illustration. Consider first the old tax regime. For a salaried tax-payer with an income…
Continue reading →Budget 2023 has made significant changes to the new tax regime. Although the old regime is still valid, the new regime will now be the default regime, and taxpayers must opt for the old regime if they wish to. Here is a free calculator to find out if you should switch to the new tax…
Continue reading →Budget 2023 has proposed welcome changes in the presumptive taxation rules for small businesses and certain professionals. Section 44AD: Old rule: Individuals, HUF or partnership firms (other than LLP) with a turnover or gross receipt of two crore rupees or less are eligible. Taxable income (profit from business) can be set to 8% or 6%…
Continue reading →Three major changes have been proposed in Budget 2023 for senior citizens. Senior Citizen Savings Scheme: The maximum deposit limit for Senior Citizen Savings Scheme has been enhanced from 15 lakhs to 30 lakhs. The entire amount invested is attributed to the first holder. So a husband can open an account for 30 lakhs, and…
Continue reading →Only the slabs of the new tax regime have been reduced (lowered for some slabs) in Budget 2023. The new tax regime will now be the default regimen, and taxpayers will have to specifically select the old regime if they wish to use it. Update: Download the free revised income tax calculator below! This is…
Continue reading →We publish a list of stocks with low volatility and momentum each month. We provide data for BSE 500 and BSE 100 stocks. There are now three different screener files available. (1) Stocks with low volatility and momentum from the BSE 100 large cap universe are available as a separate file (2) Stocks with low…
Continue reading →Based on the IRDA annual report, we discuss the claim rejection data for standalone health insurers for FY 2021-22. We can only answer how many claims health insurers reject yearly for standalone health insurers. IRDA does not provide break up details for the total claims processed by general insurers. For general insurers (including PSUs), we…
Continue reading →After the recent supreme court ruling on the Employee Pension Scheme (EPS), EPFO subscribers, as of 1st Sep 2014, can retrospectively contribute 8.33% of their basic + DA to the EPS via a deduction from the EPF. The option to do this has been opened only to a section of employees and is expected to…
Continue reading →In this edition of the reader story, we meet 27-year-old Pretorius. He shares his mistakes, his redefined goals and how he tries to focus on the big picture and keep things simple. About this series: I am grateful to readers for sharing intimate details about their financial lives for the benefit of readers. Some of the…
Continue reading →Claim settlement ratio = the number of claims paid divided by the total number of death claims received. The Life Insurance Claim Settlement Ratio 2023 (data is from 1st April 2021 to 31st March 2022), sourced from the IRDA annual report, is tabulated below. Life Insurer Claim Settlement Ratio for FY 2021-2022 Aditya Birla Sunlife…
Continue reading →Edelweiss CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index Fund is an open-ended debt Index Fund investing in the constituents of CRISIL IBX 50:50 Gilt Plus SDL Short Duration Index. The fund is classified as having “relatively high-interest rate risk and relatively low credit risk”. Let us consider the salient features of the fund….
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