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BY YASHVI JAIN
Did you ever have a wish list? What does it look like? Do you want to buy a home? Give your family an international vacation? Buy a high-end car? These things are highly common nowadays, with higher disposable incomes and standards of living. However, to make this wish-list into a reality, you need to plan your finances smartly.
One way to make it a reality is by developing an investment plan that will help you in wealth accumulation. This is where Unit Linked Insurance Plans (ULIP) come in.
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ULIP is an investment option that not only protects your family against life’s uncertainties but also allows you to create wealth. When you invest in a ULIP plan, a portion of your premium goes towards life cover. The remaining part is invested in debt and equity instruments that earn you returns over time. You can use the ULIP calculator to see how much premium you can pay affordably to keep your policy active throughout its tenure.
Most importantly, when you invest in a ULIP plan, you can save taxes under section 80c of the Income Tax Act, 1961. As per this provision, ULIP payments are eligible for tax deductions from your taxable income up to the permissible limit of Rs. 1.5 Lakh. Use an investment calculator to assess your liabilities before making a long term investment.
ULIP Tax benefits
ULIP plans help you save tax with your investments along with tax benefits at the time of its maturity. All the insurance providers these days offer an online ULIP calculator to understand the process of investment vis-à-vis your income. It is crucial to educate yourself about these things to utilize the tax-saving potential of ULIP fully. Let us discuss some of the benefits below:
- Benefits u/s 80C:
The investment you made in your ULIP plan is eligible for tax deduction u/s 80c for life insurance and 80CCC for a pension. As has been mentioned before, you can save a maximum of Rs. 1.5 lakh under both these sections. The deduction on the life insurance part of your ULIP plan can be claimed up to 10% of the sum assured or the premium, whichever is lower.
At the same time, a deduction can be claimed towards the premium paid for ULIP u/s 80CCC. However, it is essential to note that Rs. 1.5 Lakh limit is the overall limit to claim all the deductions u/s 80C/80CCC/80CCD(1). While it is your prerogative to invest a higher amount in your ULIP investment, the deduction will be capped to the permissible limit.
- Terms and Conditions to Claim the Deductions u/s 80C:
According to the Income Tax Act provisions, you are allowed to claim the amount that you pay to keep the policy in force. However, you need to pay premiums regularly and keep the investment in force to avail of tax benefits.
If you discontinue your ULIP plan after two years, then the tax benefits u/s 80C cannot be claimed. Any deductions you claimed in the previous year will be included in your income in that year.
- Tax Benefits on Partial Withdrawal and Maturity: If the premium paid towards your ULIP plan does not exceed 10% of the sum assured, then you are eligible to make tax-free partial withdrawals. The same tax exemption benefit is also applicable at the time of maturity.
However, anytime during the policy, if the abovementioned ratio exceeds the permissible limit, the future proceeds will become taxable, except in case of policyholder’s death.
- Tax benefit under ULIP retirement plan: According to section 10(10A) of the Income Tax Act, commutation on retirement ULIP is tax-free. However, if you surrender the policy or receive the pension, then it will be eligible for taxes.
- Top-up Benefit
Another notable benefit of adding ULIPs to your investment plan is the provision to expand your investment with cash through periodic top-ups. The top-ups made in this case are also eligible for tax deduction u/s 80C as well as section 10 (10D), provided that the premium does not exceed 10% of the sum assured value.
ALSO READ: Top Facts To Know About Home Loan And Taxes
In any case, the wealth that you accumulate as a result of your top-up investments will ensure that your financial planning remains unaffected due to potential tax liability. You can also use the online ULIP calculator to accurately assess the amount you want to invest in a ULIP plan to achieve your long term as well as short term financial goals.
Don’t forget to use an investment calculator to get the precise value of your return on investment. It would help if you also consider tax-saving benefits when using a ULIP calculator to compute your payable premiums.
ULIPs are a great investment choice for investors who are looking to grow their wealth over the years by staying invested in a robust financial plan.
(Disclaimer: The article is sponsored, and hence promotes some commercial links.)
Actress Kangana Ranaut has talked about how her weight adjustments for her latest 'Thalaivii' that "messed up many things" in her body and left her with "permanent stretch marks". For her role in the film, based on the life of late Tamil Nadu Chief Minister and former actress J. Jayalalithaa, Kangana had to gain 20kg and undergo major physical transformation several times.
She took to Instagram to share her experience, detailing that doing all that over the six months period left her with "permanent stretch marks". "Gaining 20 kgs in 6 months and loosing it all within 6 months that too in my thirties messed up many things in my bodya I also have permanent stretch marks as well but art comes to life with a price and more often than not price is the artist him/herself," she wrote.
"Thalaivii" showcases the varied aspects of Jayalalithaa's life, tracing her journey as an actress at a young age to becoming the face of Tamil cinema, as well as the rise of the revolutionary leader who changed the course of the state's politics. Talking about her upcoming works, Kangana currently has 'Dhaakad'.
She is also shooting for her next 'Tejas', where she plays a fighter pilot. The Indian Air Force was the first of the country's defence forces to induct women into combat roles in 2016. The film takes inspiration from the landmark event. 'Tejas' is directed by debutant Sarvesh Mewara. The film will be RSVP's second film which pays a tribute to the Indian military after the immensely successful film "Uri: The Surgical Strike" which was released in January 2019. (IANS/ MBI)
Keywords: Kangana Ranaut, Thalaivii, bollywood, stretc marks, actress, tamil cinema
Signal's encrypted messaging app continues to be down on Monday after facing global outage on Sunday. The firm said it is working to fix it. "Hold tight, folks! Signal is currently down, due to a hosting outage affecting parts of our service. We're working on bringing it back up," the firm said in a tweet on Sunday.
The status website says the encrypted messaging app is "experiencing technical difficulties" and many people are also getting an in-app error message that says the same thing. Signal allows for secure and encrypted video, voice and text communication, but users are unable to send any messages.
According to Downdetector.com, users started reporting outages around 11:05 PM Eastern Standard Time and it appears to be affecting people around the world. Comments shared on Downdetector.com indicates that Signal was down for users from India, US, Germany, New Zealand, Netherlands, Australia, Brazil and many other countries.
"Down in Midwest USA. Signal was started by people connected to which secret 3-letter organization? (Look it up) Yep, that's right! An app disguised a privacy app to trick you into sharing more private information than you would with another messaging app," a user said. "I think Signal is having a rough day. Good luck, Team Signal. I'm sure you'll have it sorted out in a snap," said another. The encrypted messaging service has climbed to the top spot in the free apps category of the App Store in multiple countries, including India. (IANS/ MBI)
Keywords: Signal, app, encrypted, messages, outage, down
Apple has acknowledged an issue where the "unlock with Apple Watch" feature might not work with its new iPhone 13 devices and promised to fix this issue with an upcoming software update. "You might see 'Unable to Communicate with Apple Watch' if you try to unlock your iPhone while wearing a face mask, or you might not be able to set up Unlock with Apple Watch," the iPhone maker said in the support document.
This issue will be fixed in an upcoming software update. Until the update is available, you can turn off Unlock with Apple Watch and use your passcode to unlock your iPhone 13. To turn off Unlock with Apple Watch, go to Settings > Face ID & Passcode.
Earlier, multiple users found that they cannot unlock their iPhone 13 with the Apple Watch and instead received an error. User Monzilla88 on Reddit first reported the issue to the subreddit r/AppleWatch. They stated that both their iPhone 13 Pro and Apple Watch SE are up to date with the newest iOS and watchOS updates.
"Whenever I try to enable unlock with Apple Watch on my phone I get an error saying "Unable to communicate with Apple Watch," they posted. Monzilla88 claimed that they had tried unpairing and repairing, hard resetting both devices, turning on and off passcodes, but not no avail, the report said. More than 20 other users self-reported the same problem, with others noting that the feature works fine on iOS 15 on older models of iPhone, including the iPhone 11 Pro Max and the iPhone X. (IANS/ MBI)
Keywords: iPhone 13, apple, watch, issue, update, face lock