{"id":7591,"date":"2020-01-14T14:13:00","date_gmt":"2020-01-14T08:43:00","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7591"},"modified":"2021-05-31T22:02:57","modified_gmt":"2021-05-31T16:32:57","slug":"tax-investments","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/tax-investments\/","title":{"rendered":"How India Tax Investments in 2021 \u2605 23 most common Investments Explained"},"content":{"rendered":"\n<p>Taxation plays a very important role in the returns generated by your investment and so you should know <strong>how India tax investments<\/strong> before you choose one. We list down the <span style=\"text-decoration: underline;\"><strong>most common investments and how they are taxed?<\/strong><\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Fixed Income\/Debt Investments<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Saving Bank Account<\/span><\/h3>\n\n\n\n<ul><li>Interest earned in Saving bank account <strong>up to Rs 10,000 is exempted from tax<\/strong> u\/s 80TTA. Any interest more than Rs 10,000 is added to your income and taxed at income tax slab rates.<\/li><li>Senior citizen can claim tax exemption up to Rs 50,000 on interest income from bank\/ post office fixed deposit, recurring deposit or savings account <a href=\"https:\/\/www.apnaplan.com\/sec-80ttb\/\">up to Rs 50,000 u\/s 80TTB (applicable from April 1, 2018)<\/a><\/li><li>There is<strong> NO TDS<\/strong> on interest earned on saving bank account.<\/li><li>This is also applicable for Post Office Savings Account.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-6e7020d4\"><h4 class=\"uagb-notice-title\"><strong>Which bank pays highest interest on Savings Account?<\/strong><\/h4><div class=\"uagb-notice-text\"><p>Most banks today pay interest in the range of 2% to 3% on their savings account. However there are banks who can pay up to 7%. We have <a href=\"https:\/\/www.apnaplan.com\/which-bank-offers-highest-interest-rate-on-savings-account-in-india\/\" class=\"rank-math-link\">compared the interest rate offered by all banks in India across different balances here<\/a>.<\/p><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Bank Fixed Deposits<\/span><\/h3>\n\n\n\n<ul><li>The <strong>entire interest earned on Bank FD is added to the income and taxed according to the income tax slab rates<\/strong>.<\/li><li>However from FY 2018-19 <a href=\"https:\/\/www.apnaplan.com\/sec-80ttb\/\">interest income received from Bank\/post office FD\/RD is tax exempt up to Rs 50,000 under new Section 80TTB.<\/a><\/li><li><strong>TDS of 10% is deducted if the annual interest exceeds Rs 40,000\u00a0 <\/strong><a href=\"https:\/\/www.apnaplan.com\/budget-2019-key-changes-income-tax-rules\/\">(changed in Budget 2019)<\/a><strong> and <a href=\"https:\/\/www.apnaplan.com\/senior-citizens-budget-2018\/\">Rs 50,000 in case of senior citizens<\/a>.<\/strong> Interest across all Fixed Deposit\/ Recurring Deposit accounts across all branches of a bank is taken into consideration to arrive at the total annual interest figure for TDA.<\/li><li>If <strong>NO PAN is linked to the FD account the TDS rate is 20%<\/strong>.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-6959a828\"><h4 class=\"uagb-notice-title\"><strong><strong>Get Highest Fixed Deposit Interest Rates<\/strong><\/strong><\/h4><div class=\"uagb-notice-text\"><p>Fixed Deposit with Banks is one of the most popular and convenient investment option. To help you choose the best, we <a href=\"https:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\" class=\"rank-math-link\">compare the interest rates on fixed deposit across all major 48 banks in India including government, private, foreign and small financial banks<\/a> in India every month. This may prove to be quite handy for you in <a class=\"rank-math-link\" href=\"https:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\">choose the Best Bank FD scheme<\/a>.<\/p><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Bank Recurring Deposits<\/span><\/h3>\n\n\n\n<ul><li>Budget 2015 made the <strong>tax and TDS structure for Recurring Deposit same as Fixed Deposit<\/strong>.<\/li><li>Earlier no TDS was deducted for RD deposits.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Company Fixed\/Recurring Deposit<\/span><\/h3>\n\n\n\n<ul><li>The entire interest earned is <strong>added to the income and taxed according to the income tax slab rates<\/strong>.<\/li><li><strong>TDS of 10% is deducted if the annual interest exceeds Rs 5,000<\/strong>.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-55cff37a\"><h4 class=\"uagb-notice-title\"><strong>How to fill Form 15G and Form 15H?<\/strong><\/h4><div class=\"uagb-notice-text\"><p>Are you worried about Tax Deduction at Source (TDS). In case you are eligible you can fill up Form 15G (if below 60 years of age) and Form 15H (if senior citizen). We show <a href=\"https:\/\/www.apnaplan.com\/how-fill-form-15g-15h\/\" class=\"rank-math-link\">step by step instruction on how to fill up Form 15G\/H and save TDS.<\/a><\/p><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">NCDs\/ Bonds<\/span><\/h3>\n\n\n\n<ul><li>The<strong> interest earned on bonds\/NCDs is fully taxable<\/strong> as per income tax slab rate.<\/li><li><strong>TDS of 10% is deducted<\/strong> if the annual interest paid exceeds Rs 5,000. However, there is <strong>NO TDS if the bond\/NCD is held in Demat form.<\/strong><\/li><\/ul>\n\n\n\n<p><span style=\"text-decoration: underline;\"><strong>Capital Gains Tax on Bonds:<\/strong><\/span><\/p>\n\n\n\n<ul><li>In case the bond\/NCD is sold through exchange before maturity, it entails capital gains. If <strong>the holding period is less than 1 year, it is Short Term Capital Gains and taxed according to income tax slab<\/strong>.<\/li><li>For holding period of more than 1 year, <strong>the gains are Long Term Capital Gains and are taxed at flat rate of 10%<\/strong>. There is no indexation benefit available.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-045a48c4\"><h4 class=\"uagb-notice-title\"><strong>Learn All about NCDs<\/strong><\/h4><div class=\"uagb-notice-text\"><p>NCDs or non-convertible debentures or more popularly known as Bonds are a bit complex investment products. You must understand the product, risk involved, the taxation on interest received and when you sale it. We have done a separate post regarding this titled &#8211; <a class=\"rank-math-link\" href=\"https:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\">Know all about NCDs<\/a>.<\/p><p>Also you can <a class=\"rank-math-link\" href=\"https:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/ncds\/\">keep track of <strong>upcoming NCD issues<\/strong> here<\/a>.<\/p><\/div><\/div>\n\n\n\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"563\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-1024x563.png\" alt=\"How India Tax Investments - Tax on Debt Investments\" class=\"wp-image-12274\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-1024x563.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-300x165.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-768x423.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-1536x845.png 1536w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Debt-Investments-2048x1127.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>How India Tax Investments &#8211; Tax on Debt Investments<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Tax Free Bonds<\/span><\/h3>\n\n\n\n<ul><li>As the name suggests<strong> the interest earned on tax free bonds is tax free<\/strong>.<\/li><li>But if tax free <strong>bonds are sold before maturity, it leads to capital gains<\/strong>.<\/li><li>Investment for less than 1 Year -&gt; Short Term Capital Gains -&gt; taxed according to income tax slab<\/li><li>Investment for more than 1 Year -&gt; Long Term Capital Gains -&gt; flat rate of 10% (no indexation benefit)<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image size-full wp-image-8185 is-style-default\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"1007\" height=\"551\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png\" alt=\"How India Tax Investments\" class=\"wp-image-8185\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png 1007w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1-300x164.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1-768x420.png 768w\" sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><figcaption>How India Tax Investments<\/figcaption><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"> Tax Investments &#8211; Small Saving Schemes<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Post Office Saving Account<\/span><\/h3>\n\n\n\n<ul><li><strong>Interest up to Rs 3,500 for single holder account and up to Rs 7,000 for joint account in Post Office Saving Account is tax free&nbsp;u\/s 10(15)(i)<\/strong>. The remainder interest will get added to your income and will be taxed at the applicable rate of income-tax.<\/li><li>There is<strong> NO&nbsp;TDS<\/strong> on Post Office Saving Account.<\/li><li>Also <strong>this exemption is over and above tax exemption offered by 80TTA<\/strong>.<\/li><\/ul>\n\n\n\n<p>Example: You have Rs 9,000 interest from Bank account and Rs 5,000 from Post Office Saving Account; you can claim Rs 3,500 tax exemption u\/s 10(15)(i) for post office account and Rs 9,000 for bank account &amp; Rs 1,000 for Post office account (total \u2013 Rs 10,000) u\/s 80TTA separately.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">PPF (Public Provident Fund)<\/span><\/h3>\n\n\n\n<ul><li style=\"text-align: justify;\">The interest received is tax free<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Senior Citizen Saving Scheme<\/span><\/h3>\n\n\n\n<ul><li>The interest received is added to income and <strong>taxed at marginal income tax rates<\/strong>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">NSC\/KVP<\/span><\/h3>\n\n\n\n<ul><li>The interest received is added to income and <strong>taxed at marginal income tax rates<\/strong>.<\/li><li>There is NO TDS.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-4db92468\"><h4 class=\"uagb-notice-title\"><strong>Sukanya Samriddhi Account + PPF + SCSS Calculator<\/strong><\/h4><div class=\"uagb-notice-text\"><p>Sukanya Samriddhi Account, PPF,  Senior Citizens\u2019 Savings Scheme are part of small saving scheme sponsored by Government of India. These schemes are quite popular and rightly so because of the safety, higher interest rate offered among other things. We have built calculator for each of them where you can check the maturity amount, loan eligibility, partial withdrawal and more. Click on the links to get the relevant calculator &#8211;  <a href=\"https:\/\/www.apnaplan.com\/ppf-calculator-excel\/\" class=\"rank-math-link\">PPF Calculator<\/a>, <a href=\"https:\/\/www.apnaplan.com\/sukanya-samriddhi-yojana-calculator\/\" class=\"rank-math-link\">Sukanya Samriddhi Yojana Calculator<\/a>, <a href=\"https:\/\/www.apnaplan.com\/scss-calculator\/\" class=\"rank-math-link\">Senior Citizens\u2019 Savings Scheme Calculator<\/a>, <a href=\"https:\/\/www.apnaplan.com\/nsc-calculator\/\" class=\"rank-math-link\">NSC Calculator<\/a>.<\/p><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Investments &#8211; Retirement Plans<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">NPS<\/span><\/h3>\n\n\n\n<ul><li>40% of corpus should be used to buy annuity. The monthly pay out received is fully taxable.<\/li><li><strong>Remaining 60% of the maturity corpus is tax free <\/strong>(effective April 1, 2019)<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Pension Plans<\/span><\/h3>\n\n\n\n<ul><li><strong>1\/3 of pension maturity amount<\/strong> can be commuted (withdrawn in lumpsum) and is <strong>tax free<\/strong><\/li><li>The rest 2\/3 amount should be used to buy annuity. The monthly pay out received from annuity is fully taxable<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">EPF (Employee Provident Fund)<\/span><\/h3>\n\n\n\n<ul><li><strong>Maturity amount received form EPF is fully tax free <\/strong>if you have continuous service of more than 5 years.<\/li><li>In case the <strong>service period is less than 5 years, the amount is taxable as per income tax slab rates<\/strong>.<\/li><li><strong>TDS at 10%<\/strong> is deducted for premature and taxable withdrawal of funds from EPS, if the payment is more than Rs 50,000.<\/li><li>In case the PAN information is not furnished the TDS would be deducted as 20%.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-500d84a6\"><h4 class=\"uagb-notice-title\"><strong>How much Taxes you Need to Pay this Year? <\/strong>Download Our Income Tax Calculator to Know your Numbers<\/h4><div class=\"uagb-notice-text\"><p>Do you know how much tax you need to pay for the year? Have you taken benefit of all tax saving rules and investments? Should you use the &#8220;NEW&#8221; tax regime or continue with the old one? In case you have all these questions just <a href=\"https:\/\/www.apnaplan.com\/income-tax-calculator-india\/\" class=\"rank-math-link\">Download the Free Excel Income Tax Calculator for FY 2021-22 (AY 2022-23)<\/a> and get your answers.<\/p><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Investments &#8211; Mutual Funds<\/h2>\n\n\n\n<p>For tax purpose Mutual Funds are of two types:<\/p>\n\n\n\n<ol><li>Equity Mutual Fund and<\/li><li>Non-Equity Mutual Fund.<\/li><\/ol>\n\n\n\n<p>Any scheme which has more than 65% invested in equities is treated as Equity Mutual Fund.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Equity Mutual Fund\/Equity Oriented Balanced Fund\/Arbitrage Fund<\/span><\/h3>\n\n\n\n<ul><li>If the investment is held for <strong>more than 1 year, the gains are classified as Long Term Capital Gains and are taxed at 10.4%<\/strong> (changed in Budget 2018 and effective from April 1, 2018).<\/li><li>In case the investment duration is for l<strong>ess than 1 year, the gains are Short Term Capital Gains which are taxed at the rate of 15.6%.<\/strong><\/li><li><strong><strong>Dividends are taxed at the income tax slab rate<\/strong><\/strong><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Debt Mutual Fund\/ Balanced Fund\/MIP\/ Gold Fund\/ International FoF<\/span><\/h3>\n\n\n\n<ul><li>If the <strong>investment is held for more than 3 years the gains are classified as Long Term Capital Gains and are taxed at 20% after indexation.<\/strong><\/li><li><strong>Short Term Capital Gains are added to the income and taxed at marginal tax rates.<\/strong><\/li><li><strong>Dividends are taxed at the income tax slab rate<\/strong><\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-ddc1f137\"><h4 class=\"uagb-notice-title\"><strong>How Tax on Mutual Funds Impact your Returns in FY 2021-22?<\/strong><\/h4><div class=\"uagb-notice-text\"><p><strong>Equity Mutual Funds are one of the best\u00a0investments to generate wealth in the long run while Debt mutual funds are more suited to park money for the short term<\/strong> (as an alternative to fixed deposits).\u00a0But as in case of any investment, the final returns are determined on the way these\u00a0Mutual Funds are taxed. <strong>We discusses <a href=\"https:\/\/www.apnaplan.com\/tax-mutual-funds\/\" class=\"rank-math-link\">tax on mutual funds for FY 2021-22 [AY 2022-23]<\/a><\/strong> in all details.<\/p><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Equity<\/span><\/h2>\n\n\n\n<ul><li>If the <strong>investment is held for more than 1 year, the gains are classified as Long Term Capital Gains\u00a0and are taxed at 10.4%<\/strong> (changed in Budget 2018 and effective from April 1, 2018).<\/li><li>In case the <strong>investment duration is for less than 1 year, the gains are Short Term Capital Gains which are taxed at the rate of 15.6%<\/strong>.<\/li><li><strong><strong>Dividends are taxed at the income tax slab rate<\/strong><\/strong><\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"597\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-1024x597.png\" alt=\"How India Tax Investments - Tax on Equity Investments\" class=\"wp-image-12275\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-1024x597.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-300x175.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-768x448.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-1536x896.png 1536w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Equity-Investments-2048x1195.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>How India Tax Investments &#8211; Tax on Equity Investments<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Investments &#8211; Gold<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Gold Jewelry\/ Bullion\/ Physical Gold<\/span><\/h3>\n\n\n\n<ul><li>If the <strong>investment is held for more than 3 years the gains are classified as Long Term Capital Gains and are taxed at 20% after indexation.<\/strong><\/li><li><strong>Short Term Capital Gains are added to the income and taxed at marginal tax rates<\/strong>.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Sovereign Gold Bonds<\/span><\/h3>\n\n\n\n<ul><li><strong>Interest received on <a href=\"https:\/\/rbi.org.in\/Scripts\/BS_SwarnaBharat.aspx\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">sovereign gold bonds<\/a> is taxed<\/strong> at income tax marginal rates applicable to you<\/li><li>If <strong>bonds are held till maturity, the capital gains are tax free<\/strong><\/li><li>If the investment is held for more than 3 years but before sold maturity the gains are classified as <strong>Long Term Capital Gains and are taxed at 20% after indexation.Short Term Capital Gains<\/strong> are added to the income and taxed at marginal tax rates.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-592a84f0\"><h4 class=\"uagb-notice-title\"><strong>Should you Invest in Gold?<\/strong><\/h4><div class=\"uagb-notice-text\"><p>We looked at more than 55 years history of gold to see if its a good idea to invest in Gold. We concluded that its more volatile than perceived but investing in long term may provide you with more stable returns. You can look at the complete analysis and our conclusion <a href=\"https:\/\/www.apnaplan.com\/gold-price-in-india-40-years-history\/\" class=\"rank-math-link\">here &#8211; Looking at Gold Price History in India \u2013 Should you Invest in Gold?<\/a><\/p><\/div><\/div>\n\n\n\n<figure class=\"wp-block-image size-large is-style-default\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"589\" src=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-1024x589.png\" alt=\"How India Tax Investments - Tax on Gold and Real Estate\" class=\"wp-image-12276\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-1024x589.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-300x172.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-768x441.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-1536x883.png 1536w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2021\/05\/Tax-on-Gold-and-Real-Estate-2048x1177.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>How India Tax Investments &#8211; Tax on Gold and Real Estate<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Gold Monetization Scheme<\/span><\/h3>\n\n\n\n<ul><li>The <strong>interest received is tax free.<\/strong><\/li><li>Also there is <strong>No Capital Gains Tax<\/strong> on the appreciation in the value of gold deposited.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Investments &#8211; Life Insurance<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Endowment\/Money back Policies<\/span><\/h3>\n\n\n\n<ul><li>The <strong>final proceeds are tax free<\/strong> if the premium paid for all the years are less than 10% of the maturity amount.<\/li><li>Surrender amount exempt from tax after 3 years<\/li><li><strong>TDS at 2%<\/strong> if the total receipts exceed Rs 1 Lakh.<\/li><li>Service tax is applicable on premiums paid.<\/li><\/ul>\n\n\n\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-2811ffad\"><h4 class=\"uagb-notice-title\"><strong>Are you Paying Too much Taxes? Download your free presentation<\/strong><\/h4><div class=\"uagb-notice-text\"><p>Are you worried that you are paying too much in income tax? Are you aware of all the changes in the tax laws? Where should you invest to save taxes? Do you know all tax sections that you can use to save your tax. <a href=\"https:\/\/www.apnaplan.com\/how-to-tax-save\/\" class=\"rank-math-link\">Download a concise 43 page presentation free to answer all the above questions and save your taxes &#8211; legally.<\/a><\/p><\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">ULIPs<\/span><\/h3>\n\n\n\n<ul><li>The<strong>\u00a0maturity amount is tax free<\/strong> if the premium paid is less than Rs 2.5 lakhs every year<\/li><li>However if the premium paid is more than Rs 2.5 lakhs per year, its taxed the same way as equity mutual funds [Budget 2021]<\/li><li>Surrender amount, early partial withdrawals exempt from tax after 5 years<\/li><li><strong>TDS at 2%<\/strong> if the total receipts exceed Rs 1 Lakh.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Tax Investments &#8211; Real Estate<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Rental Income<\/span><\/h3>\n\n\n\n<ul><li>A standard deduction of 30% is allowed on rental income. Thereafter the<strong> rent received is taxed at income tax slabs<\/strong> applicable to you.<\/li><li>You can also <strong>claim deduction for interest paid on home loan<\/strong>. <del>There is no limit of interest deduction for rented home.<\/del> Budget 2017 has limited the deduction to Rs 2 lakhs irrespective of property being rented or self-occupied.<\/li><li>Additional deduction can be availed for repairs, home insurance, property tax, etc.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"background-color: #ccffcc;\">Sell\/Purchase of Property<\/span><\/h3>\n\n\n\n<ul><li style=\"text-align: justify;\">The g<strong>ains are<a href=\"https:\/\/www.apnaplan.com\/capital-gains-calculator-property\/\"> long term capital gains<\/a> if the property is held for more than 2 years [<\/strong><a href=\"http:\/\/www.apnaplan.com\/changes-income-tax-laws-fy2018\/\">Budget 2017 brought the holding time to 2 years<\/a>]<strong>. In this case it\u2019s taxed at 20% after indexation benefit.<\/strong><\/li><li style=\"text-align: justify;\">Tax payers can now buy two houses on sale of 1 house if the capital gains are less than Rs 2 crore. This benefit can be availed only once in lifetime. (proposed in Budget 2019)<\/li><li style=\"text-align: justify;\"><strong>Short term capital gains is taxed at marginal tax rate<\/strong> applicable to you.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Taxation plays a very important role in the returns generated by your investment and so you should know how India tax investments before you choose one. We list down the most common investments and how they are taxed? Fixed Income\/Debt Investments Saving Bank Account Interest earned in Saving bank account up to Rs 10,000 is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[6,31,2322,195,30,327,37,5,3013,16,4,400,9,1589,27,3],"tags":[533,3161,3160,3142,3145,3143,3146,3168,3144,3162,3171,3150,3157,3159,3166,3164,3169,3167,3165,3154,3174,3173,3163,3158,3148,3147,3155,3153,3156,3149,3176,3175,3141,3151,3152,3170,3172],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png",1007,551,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1-300x164.png",300,164,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1-768x420.png",768,420,true],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png",1007,551,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png",1007,551,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png",1007,551,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/How-are-Investments-Taxed-1.png",120,66,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":25,"uagb_excerpt":"Taxation plays a very important role in the returns generated by your investment and so you should know how India tax investments before you choose one. We list down the most common investments and how they are taxed? Fixed Income\/Debt Investments Saving Bank Account Interest earned in Saving bank account up to Rs 10,000 is&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7591"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=7591"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7591\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/8185"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=7591"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=7591"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=7591"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}