HOW DTC2012 WILL CHANGE THE WAY YOU SAVE TAX!!!!
1) INSURANCE:-
DTC WILL HAVE SIGNIFICANT IMPACT ON INSURANCE.
TO BE ELIGIBLE FOR TAX DEDUCTION A POLICY SHOULD GIVE LIFE COVER OF ATLEAST 20TIMES THE ANNUAL PREMIUM.
IF THIS CONDITION IS NOT MET YOU WILL :-
* NOT GET ANY TAX DEDUCTION ON THE PREMIUM AND
* EVEN INCOME FROM THE POLICY WILL BE TAXABLE.
TAX PLANNING TIP:- BIGGER THE LIFE COVER BETTER IT IS.
ANOTHER NOT SO GOOD NEWS IS TAX DEDUCTION LIMIT OF LIFE INSURANCE WILL GET REDUCED FROM PRESENT RS 1LACS TO RS 50,000 AN YEAR.
THE LIMIT OF 50,000 SHALL INCLUDE :-
1) AMOUNT PAID FOR TUTION FEES OF CHILDREN AS WELL AS
2)MEDICAL INSURANCE PREMIUM FOR SELF AND PARENTS.
AND FINALLY THE WORST NEWS...........
PREMATURE WITHDRAWLS FROM ULIP'S WILL BE TAXED!!!! SO NEXT TIME THE AGENT SAYS THAT YOU CAN WITHDRAW YOUR INVESTMENT AFTER 5 YEARS OR SO......TAX FREE..... DONT TRUST HIM:)
CAclubindia
