Comments on: How New tax Code can Impact us?

By: Shabbir Bhimani

Shabbir Bhimani — Sun, 26 Sep 2010 03:08:09 +0000

Insurance and especially LIC plans all fall under the second level of 50k

By: salm

salm — Sat, 25 Sep 2010 06:48:34 +0000

Shabir,

That means, what way investors get tax benefits when they take an endowment insurance plan? Does the sec 10 10 D is still in force for traditional insurance plans?

By: Shabbir Bhimani

Shabbir Bhimani — Fri, 24 Sep 2010 16:05:41 +0000

Salm, Insurance is now not under 80C anymore and for 80C it is only PF and PPF. Insurance premium separated from 80C and I do not remember the exact number under which it falls as of now.

By: Salm

Salm — Fri, 24 Sep 2010 13:46:23 +0000

Shabir,

I asked:

1. Can I get tax exemption for investing in Insurance policies
under section 80C in Direct tax code? If so, what is the maximum limit? If Ilakh limit still prevails?

2. Earlier, we used to enjoy tax free maturity under section 10 10 D for all insurance products. Now they removed ULIPS from it. Please confirm if traditional plan still enjoys the same 10 10 D benefits?

Regards
salm

By: Shabbir Bhimani

Shabbir Bhimani — Thu, 23 Sep 2010 11:04:56 +0000

Insurance is not covered under DTC 1 Lakh and so it will be under the next 50k category

By: Salm

Salm — Thu, 23 Sep 2010 09:22:32 +0000

Hello,

How about traditional insurance policy maturity and death benefits? Are they comes under taxable income? I heard sec 10(10D) is removed for ULIP plan under new tax code.

Any idea?

By: Brij Kumar Singh

Brij Kumar Singh — Mon, 01 Mar 2010 16:05:22 +0000

In case the new tax code become applicable from april 2011 as indicated, the question arises what happens to the equity generated gains which have not been realised.
Two options: (1)Sell the equity and book profit during current year as and when the market is in good moood.(2)Hope for the exemptions as on date of applicability of new tax code.
The returns from ELSS also has to be thought off as they can be reddemed only after three years.
Any suggestions.\with regards

By: Shabbir Bhimani

Shabbir Bhimani — Thu, 04 Feb 2010 14:55:40 +0000

Policy does not fall as ELSS funds and so I don’t think they would have any impact apart from your increase in saving limit to them.

By: Jit

Jit — Thu, 04 Feb 2010 07:34:56 +0000

What happens cases such as Policy taken for 25 year etc?
Will they treat pre New Code era and post new code era separately?
Any view on such issues?

By: Shabbir Bhimani

Shabbir Bhimani — Wed, 03 Feb 2010 02:54:21 +0000

Because there will be people who may have some equity based investment which is tax free till date and should be allowed to book profit and not pay the tax. This is the one reason I can think off.

By: Subal Burman

Subal Burman — Tue, 02 Feb 2010 16:41:35 +0000

Good informative post. why cant this be implemented in 2010-2011. the earlier .. the better for a salaried person.