6) In Feb 2021, the Budget was announced. Changes in taxation for ULIPs, and EPF was introduced. Also senior citizens above 75 years need not file Income Tax returns if they have only pension and interest income
BUDGET 2021
DEPOSIT INSURANCE
bank customers will be able get funds up to the deposit insurance limit of Rs 5 lakhs even if the bank is put under RBI’s watch,and it is regular operations are suspended
PROVIDENT FUND
– Employee contribution more than RS 2.5 lakhs per year towards EPF, VPf- the interest earned on such contribution would now be taxable.
– would impact those whose mandatory contributions exceeds Rs 25 lakhs
– would also impact those who voluntarily contribute above this limit through VPF.
INCOME TAX FILING
– Detailed pre-filled ITR forms along with capital gains and dividends to be available.
-Time allowed to file belated or revised returns reduced by 3 month, to be filed now by 31st December instead of 31st March.
-Reopening of tax asssesment cases(where there was evidence of tax evasion)has been reduced to three years from six years.
ULIP
– ULIP’s with premium > Rs 25 lakhs will be subject to capital gains tax similar to equality mutual funds.
– Claim amount received from such ULIPs on death of policy holder to remains tax exempt.
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