South Campus Drive Rm. Phone: All rights reserved. Skip to main content. Log in. Intuit Simulations Home. Mint information and instructions TurboTax simulation and instructions Mint Simulations 1. Introduction to Mint Simulation Have participants do this opening activity to introduce them to Mint and the fictional user Isaiah before any of the other simulations. Introduction to Mint Simulation 4. The income tax department can certainly help alleviate such difficulties by issuing a circular which clarifies that amounts raised by individual benefactors and spent by them on victims of natural calamities or pandemics would not be taxable.
This is a welcome relaxation, which applies only to cases where a person contracts covid or dies from the disease. A question that may arise in this context is whether such relief would be available in case a person dies within weeks of recovery from covid, as has happened in many cases. One hopes a legislative amendment would take care of such cases as well. Another kind of capital receipt that is taxed is gains on sale of assets.
Therefore, though your property may not have appreciated in real terms, if the impact of inflation is factored in, you still end up paying tax on part of your inflation-adjusted capital cost. Besides, on sale of listed shares, such indexation is now not available. Therefore, the longer you hold shares that rise at the same pace as inflation, the greater the tax you pay. But this gain is really nothing but an illusion created by inflation. The third type of receipt of capital which is taxed is annuity or pension under a pension or annuity plan, where there is no return of capital on maturity or death.
The annuity or pension that you receive, therefore, also involves a portion that is really return of your capital, but yet the entire amount of annuity is taxed as your regular income. Fortunately, in case of life insurance policies, due to recent amendments in the TDS provisions, it is now clear that only the excess amount received by you over and above the premium paid would be taxable as income.
In case of pension fund policies issued by life insurance companies, there could be situations where you have been allowed deduction of only part of the amount of premium paid; but tax authorities may seek to tax the entire receipt on premature surrender of the policy.
In such situations, an argument available is that only the amount received to the extent of the contribution allowed as deduction, and the appreciation, can be taxed and not the entire receipt. So for stocks and equity-oriented mutual funds, long term is defined as more than one year, but for Ulips this parameter doesn't apply.
Taxes reduce the overall returns that can get from a product. Here's a look at what the various taxes are. Never miss a story! Stay connected and informed with Mint.
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