Changes in investment rules and tax rates can prove beneficial or upset calculations. Some can boost investor sentiment, while others can pull it down. Here are some major changes in the past 10 years.
- No tax on up to Rs 10,000 interest from savings bank account
- Sec 80C investment limit increased to Rs 1.5 lakh
- Housing loan interest deduction increased to Rs 2 lakh
- Holding period for long-term capital gains from non-equity funds increased to three years. To be taxed at 20% after indexation.
- Additional Rs 50,000 deduction for contribution to NPS under Sec 80CCD(1b)
- Home loan interest for house given on rent to be capped at Rs 2 lakh.
- Minimum holding period for long term capital gains from real estate reduced to two years.
- Rs 50,000 deduction under 80CCG for RGESS funds removed.
- Up to Rs 50,000 interest earned by senior citizens to be tax free. This includes savings bank interest.
- Long-term capital gains beyond Rs 1 lakh from stocks, equity funds to be taxed at 10%
- Additional interest deduction of Rs 1.5 lakh on loans for affordable housing.
- TDS threshold for interest raised to Rs 40,000 (Rs 50,000 for senior citizens).
- 60% of NPS corpus that can be withdrawn on maturity will be tax free.
- Dividends from stocks and mutual funds to be taxed as regular income.
- Ulips with premium Rs 2.5 lakh and above lose tax free status. To be taxed as mutual funds.
- Interest from PF contributions above Rs 2.5 lakh a year to be taxed as regular income.