Skip to main content

Featured Post

A Comprehensive Guide What Are the Best Stocks to Buy on the NSE?

  Introduction   India’s National Stock Exchange (NSE) is one of the world’s most dynamic value markets, advertising speculators introduction to a wide cluster of sectors—from data innovation and pharmaceuticals to buyer merchandise and budgetary administrations. As the Indian economy proceeds to develop, numerous retail and organization financial specialists ponder which stocks merit a put in their portfolios. Whereas there is no one ‑ size ‑ fits ‑ all reply, a taught approach that centres on essentials, valuation, and macro ‑ economic patterns can offer assistance you recognize high ‑ quality companies with solid development prospects.   Understanding the NSE Scene Metric What It Means for Investors Market Capitalization Large ‑ cap stocks (₹10,000 crore +) tend to be more liquid and less volatile, while mid ‑ caps and small ‑ caps can offer higher growth but come with greater risk. Liquidity (Average Dail...
Post a Comment

You can also avail tax exemption on GST levied on insurance premium



You can also avail tax exemption on GST levied on insurance premium



You will be aware of the tax exemption under the Income Tax Rules on the payment of premium for life and health insurance, but let us know that you can also get a tax rebate in lieu of GST payment on premium. Its limits and conditions are fixed under the Income Tax rules. Health insurance premium attracts 18 per cent GST. If the premium of your policy is 21 thousand rupees, then you will have to pay 3960 rupees more according to 18 per cent GST. In this way, you will have to pay a total of Rs 24,960. Under the Income Tax Rules, a total tax exemption of up to Rs 25 thousand can be taken on health insurance. In this way, you can get a total tax rebate of Rs 24,960.

 

Under the Income Tax Rules, you can get a total tax rebate of up to Rs 1.50 lakh on the life insurance premium. However, tax exemption on GST payment varies according to the policy. The term plan charges 18 per cent GST. If you are 30 years old and take a term plan covering one crore rupees for 30 years, then its premium will be around twenty thousand rupees. After adding 18 per cent GST to this, the total premium will be Rs 23,600. In this case, you can take a tax rebate of Rs 23,600.

 

The premium of Unit Linked Plan (ULIP) linked to the stock market is divided into two parts, investment in policy and investment in the market. In this, GST is charged only with premiums covered by insurance, management expenses and other charges. There is no GST on the investment portion in such a policy. The GST rate in ULIPs is 18 per cent.

 

In traditional life insurance, endowment plan, GST is charged at 25 per cent of the total premium of the first year and the rate is 4.5 per cent. After this, in the following years, it attracts a GST of 12.5 per cent on the total premium. Ultimately, the average GST in traditional policies is 2.25 per cent.

 

If you are employed, employers ask for proof of investment so that tax deduction (TDS) can be done at the source more or less than your salary. Normally in February, all employers ask their employees for this information through a form. In such a situation, while filling this document, assess the insurance premium and GST payment made on it and give details of it carefully.


Labels:

Comments

Post a Comment

Popular posts from this blog

Know All About Sovereign Gold Bond Scheme (SGB)

    The first time Sovereign Gold Bond Scheme was first introduced by the Government of India in the Union Budget of 2015-16. It was introduced by the Government of India to reduce the demand for the physical gold form and a part of this physical gold is bought every year in the form of gold bands for the purpose of invest in SGB.   Latest on Sovereign Gold Bond Scheme    A tenth tranche of the buy SGB Series – The Sovereign Gold Bond Scheme 2021-22 - Series X in which the Reserve Bank of India (RBI) sell gold bonds linked to the market price of gold on behalf of the government made available for investment will be open for buy SGB for the period from February 28th to March 4th.   What is Sovereign Gold Bond?   The Sovereign Gold Bond is an initiative taken by the Government of India to reduce the demand for physical gold as per the Reserve Bank of India as the increasing import of gold is affecting the growth and investment of India. Large quantities ...
Post a Comment
Read more

Know that senior citizens get many special concessions in income tax

  People above 60 years of age, i.e., senior citizens, not only get the benefit of income tax exemption but also receive special relief from income tax on investments and returns. Elderly citizens do not have to pay any income tax on income up to Rs 3 lakh.   Exemption in tax limit under 80C limit: The tax exemption limit for old citizens in a financial year is Rs 3 lakh, while a common man gets tax exemption only up to Rs 2.5 lakh. For very senior citizens who are above 80 years of age, it is Rs 5 lakh. That is, if the annual income of a senior citizen is up to Rs 3 lakh and TDS has not been deducted, then he need not file an income tax return. Similarly, very senior citizens need not file income tax returns if they do not have an annual income up to Rs 5 lakh.   If the age is more than 75 years then no return is required: Those above 75 years of age are not required to file tax returns. There is no any need to file ITR for people above 75 years of age who are ...
Post a Comment
Read more

What is the Orange Economy? Top Sectors to Invest in 2026.

  In a time when mechanization and machine learning are changing conventional businesses, a flourishing portion of the worldwide economy is illustrating that human resourcefulness is still a important asset. The "Orange Economy"—also known as the imaginative economy or social industries—has played a major part in protecting culture, making occupations, and developing the economy. But what is this energetic thought, and why is it picking up conspicuousness in discussions almost worldwide development?   What is the Orange Economy?   The express "Orange Economy" was at first utilized by previous Colombian President Iván Duque Márquez and previous Culture Serve Felipe Buitrago. Concurring to the Inter-American Improvement Bank, it is "the organize of interconnected forms through which thoughts are turned into social merchandise and administrations whose esteem is decided by mental property."   Orange was particularly picked since it has been related with devel...
Post a Comment
Read more