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.
April 2012
No tax on up to Rs 10,000 interest from savings bank account
July 2014
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.
April 2015
Additional Rs 50,000 deduction for contribution to NPS under Sec 80CCD(1b)
April 2017:
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.
April 2018
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%
July 2019
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60% of NPS corpus that can be withdrawn on maturity will be tax free.
April 2020
Dividends from stocks and mutual funds to be taxed as regular income.
April 2021:
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.
