ITC Ltd. Demerges Its Hotels Business: What It Means for Shareholders ITC Ltd. has officially separated its hotels division, creating a new company called ITC Hotels Ltd. (ITCHL). This means ITC shareholders will receive shares of ITCHL as per the demerger ratio. How Will Shareholders Benefit? If you held ITC shares as of the record date (January 6, 2025), you will get shares of ITC Hotels Ltd. in the ratio of 1:10 . This means for every 10 shares of ITC Ltd. , you will receive 1 share of ITCHL . Tax Implications for ITC Shareholders Taxes will apply only when you sell either your ITC shares or ITCHL shares. The tax treatment depends on how long you have held the shares: Short-term capital gains (STCG) – If sold within one year of purchase (for listed shares). Long-term capital gains (LTCG) – If held for more than one year . The holding period for ITC Hotels shares will be counted from the date when you originally bought ITC Ltd. shares. Cos...
Loans Against Your NPS Account : A Simple Guide Many investors are familiar with loans against shares or mutual funds . What fewer people know is that NPS (National Pension System) subscribers can now also access limited financial assistance against their NPS savings through regulated lenders. This facility became possible after recent reforms by PFRDA , which allow lenders to place a lien on a part of an NPS account. The change improves liquidity for subscribers while keeping their retirement planning largely intact. Here is a clear and easy explanation of how loans against NPS work, who can use them, and what to keep in mind in 2026. What Changed in NPS Rules? Under the updated PFRDA framework, NPS subscribers can take loans against up to 25% of their own contributions . Instead of withdrawing money from the account, a lender places a lien (a temporary charge) on the eligible portion of the NPS corpus. This means subscribers can meet short-term financial needs without exitin...
NPS Annuity After Death – What Happens to the Corpus? Question: “If an NPS subscriber dies, what happens to the accumulated amount? Will the nominee/legal heir get the full 100% corpus or is it compulsory to buy annuity? Also, is the amount received tax-free?” Answer: As per PFRDA (Exits & Withdrawals under NPS) Regulations, 2015 & amendments , the rules differ slightly depending on the type of NPS account. Let’s break it down: ✅ For Subscribers from Government Sector : If the accumulated corpus is up to ₹5 lakhs , the entire amount is paid as a lump sum to the nominee/legal heir. If the accumulated corpus is more than ₹5 lakhs , then: 80% of the corpus must be used to purchase a default annuity from an Annuity Service Provider (ASP). 20% of the corpus can be withdrawn as a lump sum . ✅ For Subscribers from All Citizen & Corporate Sector : In case of death, 100% of the accumulated corpus is payable to the nominee/legal heir as a lump sum . T...
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