Financial Planning Archives

New Tax Rules for Life Insurance Policies with Premiums Exceeding Rs 5 Lakh

The Central Board of Direct Taxes (CBDT) has introduced new tax rules for life insurance policies with premiums exceeding Rs 5 lakh. Under the new rules, sums received from such policies will no longer be exempt from tax, starting from the assessment year 2024-25. This means that policyholders will have to pay tax on the entire amount received, including the sum assured and any bonuses. The new rules apply to all life insurance policies, except unit-linked insurance policies.

Here are some of the key points to note about the new tax rules:

The new rules will only apply to sums received after the assessment year 2024-25.
The new rules do not apply to unit-linked insurance policies.
The new rules will not apply to policies taken for the benefit of a dependent.
Policyholders who have life insurance policies with premiums exceeding Rs 5 lakh should review their policies in light of the new tax rules. If they are concerned about the tax implications, they should consult with a financial advisor.

How to Build an Emergency Fund in India: A Step-by-Step Guide

An emergency fund is a financial safety net that can help you cover unexpected expenses. In this blog post, we will discuss how to build an emergency fund in India. We will provide tips on how to set a goal, make a budget, and automate your savings. We will also discuss where to invest your emergency fund.

The Way to Better Learning

Learning from your own mistakes is good. Learning from other peoples’ mistakes is even better. What’s your way to better learning?

Are you able to Prioritize?

I am coming across more and more people who are unable to prioritize. If you tell them to list their goals as per priority, they go blank.

The 10 Most Common Money Management Mistakes

Which are the ten most common money management mistakes people make? Check out the reverse order list below.

Investing in Mutual Funds – Things to Consider before Investing

So you have decided to start investing in mutual funds. Let’s look at some of the basics you need to understand before you start investing in mutual funds.

Financial Planning and Goal Setting – The Basics

Many people have the desire to get their finances in order but they don’t get far with it. Perhaps, it is because they do not have a systematic process to follow. If you are one of those, I have here the basics of financial planning and goal setting, for you. Adequate Risk Cover: The first […]

Financial Planning for a Business Person with Unpredictable Income

Financial Planning seems to be easy when you have a fixed income every month. But what about a business person or anyone else who has unpredictable income. They do not have the luxury of a fixed income every month.