Indiabulls housing finance limited

Finance Minister Nirmala Sitharaman on February 1 announced that individuals with an income of up to Rs 7 lakh will not have to pay any tax under the new tax regime. They will be eligible for a rebate under section 87A that is currently available to individuals with income of up to Rs 5 lakh, she said during her Budget 2023 speech. No rebate for taxpayers opting for the older tax regime If you, like most other tax-payers, have been opting for the older, with-exemptions tax regime that offers tax breaks under section 80C among other things, you will not be eligible for this rebate. You will get a rebate under the old regime only if your income is less than Rs  5 lakh. The older regime continues to be in force, but will no longer be the default tax structure. Read More What is a rebate? In a bid to attract more taxpayers to the new structure, Sitharaman sweetened the deal by allowing rebate on incomes of up to Rs 7 lakh, up from Rs 5 lakh earlier. The … [Read more...] about Budget 2023: Is the Rs 7-lakh tax-free income limit only for the new tax regime?

Share to Twitter Share to Linkedin There is no doubt that over its 36-year life that the Low Income Housing Tax Credit (LIHTC) has housed many people. But how many? As my last post showed, there are many known unknowns about how and how well the LIHTC has functioned over those years. For example, a common number offered as an answer to the question, “how many units has LIHTC created over its 36 years?” the answer is often something like 29 million. Where does that figure come from? Column V in the LIHTC “database,” a column in the Excel spreadsheet that has 3,000 blanks and 1,500 cells with “0” as the answer. It is a challenge to reform a federal expenditure when no deep evaluation is possible for lack of good data. However, I’d like to close the LIHTC portion of the look back at Paul Ryan’s critique with some ideas for reform. I’ve concluded that the Low Income Housing Tax Credit Program isn’t really a program at all. It is behemoth , a complex of … [Read more...] about Series: Unwind The LIHTC, Create Tax Benefits For Builders And Families

Finance Minister Nirmala Sitharaman presenting the 2023 Union Budget Micro, small and medium enterprises got a major boost in the Budget with Finance Minister Nirmala Sitharaman proposing an allocation of Rs 22,138 crore for the sector for 2023-24. And, that was not all, there were more benefits rolled out for the sector. To ensure that the long-standing demand to mitigate delayed payment issues is met, the FM laid down strict rules to make sure corporates can claim deduction only once payments to MSMEs are cleared. While announcing a supplemental collateral-free credit scheme for MSMEs on February 1, Sitharaman once again discussed the issue of India Inc delaying payments to small businesses. To ensure MSMEs get paid in time, she announced that tax deductions will only be allowed for expenses incurred on making payments to them, only after the dues are actually cleared. Also read: Union Budget 2023 : FM announces revamped credit guarantee scheme for MSMEs … [Read more...] about Budget 2023: FM lines up measures to ensure India Inc clears dues to MSMEs on time

Finance Minister Nirmala Sitharaman India's life insurance companies have asked Finance Minister Nirmala Sitharaman for a meeting to emphasise their role and importance. "We would like to reinforce the place and role of life insurance in the economy. I would really request that you give us, the life insurance CEOs, some time to meet you and work with you to realise your vision for the sector and the industry," Vishakha RM, managing director, and chief executive officer of IndiaFirst Life Insurance, told Sitharaman on February 7 at an industry interaction. The life insurance company chief's request comes after the Budget for 2023-24 sent the sector into a tizzy. The Budget proposed that income from life insurance policies, other than ULIPs, issued in the next financial year and where the total annual premium is greater than Rs 5 lakh will not be tax-exempt. According to experts, this would dent the top and bottomlines of insurance companies. The Budget announcement led to … [Read more...] about Amid Budget announcement pressure, life insurers seek meeting with FM Sitharaman

Market-linked debentures are listed securities and are currently being taxed as long-term capital gain (LTCG) at the rate of 10% without indexation. The Union Budget for 2023-24 on February 1 has said that the capital gains on market-linked debentures (MLDs) will now be taxed as short-term capital gains, a blow to high net-worth individuals and family offices. High net-worth individuals tend to pick MLDs, given the tax treatment they attract. Market-linked debentures are listed securities and at present, are being taxed as long-term capital gain (LTCG) at the rate of 10 percent without indexation. Also read | Rs 7-lakh tax-free income limit, how does that play out for you? But according to the government, these securities are in the nature of derivatives, which are normally taxed at applicable rates. Further, they give variable interests as they are linked with the performance of the market. “One of the positive aspects of the Budget was to deal a body blow to … [Read more...] about Budget 2023 deals a body blow to market-linked debentures

Hassane Kamara of Watford FC looks dejected following their side's defeat in the Premier League match between Manchester City and Watford at Etihad Stadium on April 23, 2022 in Manchester, England. (Photo by Alex Livesey/Getty Images) Hassane Kamara is a high-octane defender at Watford FC in England. He was the club’s player of the year last season despite only joining in January 2022. He’s also emblematic of the financial engineering available to football clubs through the increasingly popular multi-club ownership model. Watford was relegated from the Premier League last summer and Kamara was sold to Udinese of Italy for a profit of about £12 million ($14.4 million). That looked like a great trade — but even better was that Udinese, which is owned by the same Italian family that owns Watford, immediately loaned the player back. No rules were broken and Watford Chairman Scott Duxbury was upfront about the motives, telling the club’s website that the deal aimed to balance … [Read more...] about It’s not just Manchester City. Financial football is becoming more prevalent

Share to Twitter Share to Linkedin The cannabis and hemp industries have been evolving more rapidly than almost any other on earth, and countless individuals, corporations and organizations are making significant contributions to its growth and success. But who are the real game-changers in this rapidly expanding sector? Look no further than the 4th annual Cannabis 50 list, compiled by MGO, a CPA and business advisory firm in the U.S., being released exclusively through this publication. The fourth iteration of this annual list recognizes the top companies, organizations and individuals who have made a positive impact on the cannabis and hemp industries in the past year. But, as the firm notes, the Cannabis 50 isn’t a competition. There are no winners or losers, only inspiring stories from the frontlines of this great movement. Diversity At The Helm This year’s list is particularly noteworthy, as it highlights an increased presence of female and … [Read more...] about MGO Names 50 Game-Changers In Cannabis, Including Diddy, Mike Tyson And More

What Is a Mega Backdoor Roth 401(k) Conversion? A mega backdoor Roth 401(k) conversion is a tax-shelter strategy available to employees whose employer-sponsored 401(k) retirement plans allow them to make substantial after-tax contributions in addition to their pretax deferrals and to transfer their contributions to an employer-designated Roth 401(k). The Build Back Better Act, H.R. 5376, passed by the House of Representatives on Nov. 19, 2021, contains provisions that, if enacted, would limit the ability of high-income taxpayers to accumulate extremely high-value balances in Roth 401(k)s and would eliminate backdoor Roth conversions for high-income taxpayers after Dec. 31, 2031. As of spring 2022, the Build Back Better Act remains stalled in the Senate, and these provisions may not come to pass, at least not in their current form. But mega backdoor Roth conversions remain an important issue—and a notable route to wealth for higher-income taxpayers. Key Takeaways H.R. … [Read more...] about Mega Backdoor Roth 401(k) Conversion: Overview and FAQ

Use tax planning to achieve your financial goals The gradual move towards a new, simplified tax system has been on the horizon of the government since the new tax regime was first introduced under the Union Budget 2020. After all the new tax regime is about low deductions and lower taxes. Yet, a complete tilt was still hanging. On Wednesday, finance minister Nirmala Sitharaman finally announced the government’s seriousness in marking this shift. The FM said the government proposes to make the new tax regime as the default setting for all income tax returns from April 1, 2023. What forced the government’s hand? The answer may lie in a series of specific complaints by taxpayers. Tax processing centres and the tax department itself received complaints from individual assesses that a higher rate of tax was deducted even though they didn’t have any tax-saving or home loan. Read More “Since their taxes were deducted at a higher rate and they were clueless, there … [Read more...] about What may have forced the government to make new tax regime the default

Finance Secretary TV Somanathan TV Somanathan is one of the key persons behind drafting the budget. In an interaction with Shweta Punj of Moneycontrol, the finance secretary shared the thoughts  that went into drawing up the document, and nuancing between the known unknowns and unknown unknowns. Edited excerpts: Q: The economy has faced several global headwinds yet managed to stay steady. What were your priorities as you were drafting this budget? What were the three key things that you wanted to ensure? There were three key priorities. One, to act as a driver of growth at a time when global growth is slowing down, but when India is poised to recover its growth rate to its potential. That was one of the objectives, which you see reflected in a big increase in capital investment and in several other parts of the budget, which are essentially to propel growth. The second major concern was that in doing that, we wanted to be sure that we were fiscally prudent. In our … [Read more...] about It is a challenging number, the reduction to 4.5, but it is feasible. It’s difficult, but feasible