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            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...

 

 

 TDS, TCS THRESHOLD For those above 60, the Budget has announced a doubling of TDS threshold related to deposit interest. From the current level of ₹50,000, TDS will now be applicable only if the interest income is more than ₹1 lakh, thus giving considerable relief to senior citizens.  For those below the age of 60, the TDS threshold has been increased by ₹10,000 to ₹50,000 from ₹40,000 currently. The condition for this TDS relief is that the interest income must be given by banks, cooperative societies or post office. Interest income from any other entity would not enjoy these new benefits. Many individuals wish to send their kids abroad for higher education. Their remittance for funding the overseas education is subject to TCS. The threshold for TCS has been increased by ₹3 lakh to ₹10 lakh from ₹7 lakh earlier. The TCS rate with regard to education loan will remain at 0.5 per cent. Source :: Business Line

 CLARITY ON ULIP TAXATION  ULIPs had been brought under the tax ambit a few years ago. Under section 10(10D) gains from ULIPs on annual premiums up to ₹2.5 lakh are tax free, subject to certain conditions.   However, when premiums exceeded ₹2.5 lakh, the gains were added to the income of the investor and taxed at the marginal slab applicable. However, the Budget has stated gains on ULIPs with annual premiums exceeding ₹2.5 lakh would be taxed at 12.5 per cent, provided the holding period is more than one year. Thus, there is substantial relief for ULIP investors. This move also brings taxation of ULIPs on par with other market-linked financial products.