As per the announcement in the budget, those who pay more in EPF will have to pay tax on interest income. This is applicable for those who invest more than Rs 2.5 lakh per annum.
J nakiyamaya two investment projects will no longer be applicable to NPOs income tax. Income tax was levied on surplus EPF and investment in ULIP. Currently, capital gains received at maturity in EPF and ULIP were not taxable.
With this, a tax rate similar to that of a mutual fund was applied to ULIP. When capital gains tax was introduced in the 2018 budget for equity investment and mutual funds, ULIP was not included.
As per the announcement in the budget, those who pay more in EPF will have to pay tax on interest income. This is applicable for those who invest more than Rs 2.5 lakh per annum. Deposits after April 1 will be taxed.
It will not affect ordinary EPF investors, but those who invest more as VPFs in addition to the share normally paid to the EPF for future tax-free returns.
Capital gains tax is levied on ULIPs who pay a premium of more than 2.5 lakh per annum. At present, the same tax is levied on mutual funds and equity investments. That is, 10 per cent tax and cess will be levied on the amount of Rs 1 lakh deducted on capital gains on maturity. This applies to ULIP policies taken out after February 1