Page 76 - DHC Budget Book 2021-22 Final
P. 76
INDIA BUDGET 2021-22
6.4
Extension of time limit for sanctioning of loan for Affordable Housing [Sec. 80EEA] [w.e.f. AY 2022-23]
Sec. 80EEA has been introduced w.e.f. AY 2020-21, to provide additional deduction (up to
H 1.5 lacs) to an individual assessee in respect
of interest on loan taken for acquisition of an affordable residential house property from any financial institution, subject to certain conditions specified therein.
One of the conditions [Sec. 80EEA(3)(i)] for availing the deduction is that the loan has been sanctioned by the financial institution during the period 01-04-2019 to 31-03-2021.
In order to further promote affordable housing, the terminal date for sanctioning of loan by the financial institution is proposed to be extended to 31-03-2022.
Comments
Deduction u/s 80EEA is over and above the deduction of H 2 Lacs u/s 24(b). Now, an eligible assessee can claim a aggregate deduction of
H 3.5 Lacs subject to compliance of Sec. 80EEA r.w.s 24(b)
6.5 Taxation of proceeds of high premium ULIP [Sec. 2(14), 10(10D), 45(1B) & 112A] [w.r.e.f. AY 2021-22]
Existing provisions of Sec. 10(10D) provides for exemption from tax of sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, in respect of which the premium payable for any of the years during the term of the policy does not exceed 10% of the actual capital sum assured.
It is now proposed to insert fourth proviso to Sec. 10(10D) to provide that exemption shall not apply to proceeds of ULIP issued on or after the 01-02-2021, if the amount of premium payable for any of the PY during the term of such policy exceeds H 2.5 Lacs.
Further, fifth proviso is proposed to be inserted to provide that exemption shall also not apply to ULIPs issued on or after 01-02-2021 where the aggregate amount of premium of all such ULIPs exceeds H 2.5 Lacs in any of the PY during the term of any of those policies.
Explanation 3 has been proposed to be inserted so as to define “unit linked insurance policy” as a life insurance policy which has components of both investment and insurance and is linked to a unit as defined in clause (ee) of regulation (3) of the Insurance Regulatory and Development Authority of India (Unit Linked Insurance Products) Regulations, 2019.
Sixth proviso has been proposed to be inserted to provide that the provisions of the fourth and
fifth provisos shall not apply to any sum received on the death of a person.
Seventh proviso has been proposed to be inserted to provide that the CBDT may, with the approval of the CG, issue guidelines for the purpose of removing the difficulty which arises in giving effect to the provisions of this clause.
Simultaneously, it is also proposed to amend the definition of capital asset by inserting a new sub-clause (c) to Sec. 2(14) to include high premium ULIP.
It is further proposed to insert Sec. 45(1B) to provide for taxation of profits or gains from the redemption of high premium ULIP under the head capital gains to be computed in the prescribed manner.
It is further proposed to amend Explanation to Sec. 112A to include high premium ULIPs within the definition of equity oriented fund. As a result, capital gain will be taxable at a concessional
tax rate @ 15% [u/s 111A] or 10% [u/s 112A] as applicable.
Consequential amendment has also been proposed in Finance (No 2) Act, 2004 w.e.f. 01-02-2021 to make security transaction tax applicable on maturity of or partial withdrawal from high premium ULIP.
74 Building a Resilient and Confident India
