An amended Finance Bill 2021 passed by Parliament on 23 March has imposed minimum equity holding requirements on unit linked insurance plans, or Ulips, with high premiums. The original Finance Bill had stipulated that Ulips with annual premiums above ₹2.5 lakh would lose their tax-exempt status on maturity proceeds under Section 10(10)(D) of the Income Tax Act, 1961. Such Ulips would be taxed on par with equity mutual funds.
Key to long-term investing: ‘Time in the market’ more important than ‘timing the market’
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