The Reserve Bank of India has released the calendar for the Sovereign Gold Bond Scheme, 2021-2022 for the first 6 months of FY2022. The Bonds will be available for subscription in 6 monthly tranches from May 2021 to September 2021. For the tranche that is now open for subscription (May 17- May 21, 2021), the subscription price is Rs 4,777 per gram. For an online … [Read more...] about Sovereign Gold Bonds 2021-2022: Should you invest?
If you rush to make tax-saving investments in the months of February and March, it is appropriate that you also try to reduce tax liability on your capital gains through tax loss harvesting. After all, both serve the same purpose. Reduce your tax outgo. In this post, we look at the concept of tax loss harvesting, where you use (or intentionally book) capital losses to set … [Read more...] about How Tax loss Harvesting can help you save Capital Gains Tax?
The Budget 2021 changed the way Unit Linked Insurance Plans (ULIPs) will be taxed. This reduces the difference between the taxation of mutual funds and ULIPs. Let's find about how ULIP taxation has changed. What is the new rule about ULIP taxation? If you buy a ULIP on or after February 1, 2021 and the aggregate annual premium of such ULIP (ULIPs) exceeds Rs 2.5 lacs … [Read more...] about How ULIPs will be taxed? (After Budget 2021)
In Budget 2021, the Government has introduced a tax on interest on employee contribution to EPF over Rs 2.5 lacs in a financial year. The Government rationale is that many HNIs are taking benefit of tax-free interest by contributing heavily to the employee provident fund (EPF) account. Read this Economic Times article for more details. The Government feels it is not right … [Read more...] about Tax on EPF: Will the Interest on Taxable Interest be taxed?
The Finance Minister presented the Union Budget 2021 today. Here are the key highlights. #1 Income Tax Slabs remain unchanged No changes have been made to the income tax slabs. No additional tax benefits have been announced either. #2 Interest on EPF becomes taxable in certain cases Current Regulation: Interest on your contribution to EPF account is exempt from … [Read more...] about Budget 2021: Highlights: Changes to EPF, ULIP taxation
In Budget 2018, Long term capital gains tax on equity mutual funds was introduced. Prior to the change, the LTCG on sale of equity mutual funds was exempt from tax. This change brought an interesting taxation arbitrage. Taxation of maturity proceeds from Unit Linked Insurance Plans (ULIPs), offered by insurance companies, was left untouched and the maturity amount from ULIPs … [Read more...] about Tax-Free ULIPs vs. Mutual Funds with LTCG tax: Which is better?
There was a happy surprise for investors in Franklin Ultra Short Bond Fund recently. In January 2020, the AMC had side-pocketed its investments in Vodafone Idea bonds. In June 2020, Vodafone Idea made interest payment on these bonds and you would have received some payment. On July 10, 2020, the 8.25% Vodafone Idea Ltd. bond matured, and Franklin schemes received the … [Read more...] about Franklin Debt MF: Vodafone Idea Payment (Segregated Portfolio): How will it be taxed in your hands?
I have written about side-pocketing of debt mutual fund in a previous post. We discussed the pros and cons. One topic we didn’t discuss in that post was the taxation of proceeds from side pockets or segregated portfolios. In this post, we take a stepwise approach to understand how proceeds from MF side pockets or segregated portfolios are taxed. If you were an investor in … [Read more...] about How Mutual Fund Sidepockets are taxed?
Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act? (Latest Rules)
The current market crash has been very painful. Equity portfolios have taken deep cuts. During such times when we are so occupied with limiting losses in our equity portfolios, we might lose out on peculiar tax-saving opportunities that these times may throw up. I am talking about tax-loss harvesting, where you can use losses from one capital asset to set off capital … [Read more...] about Market Crash: Use Tax Loss Harvesting to Reduce your Tax Liability