Your Financial Assistant
After submitting and verifying your Income Tax Return (ITR), the tax department reviews it, either through automated systems or manually, to ensure everything is accurate and matches their records. If they find any discrepancies or have questions about declared or undeclared income, deductions, or exemptions, …
Most of the Investments are profitable only in long term. How ever we can use these Investments as mordgage for short term loand when need arises. People used to take personal loans when in need but Little do they realise that one can take loan …
Amazon Pay ICICI Credit Card is a cashback credit card best suited for Amazon Prime members. It offers substantial cashback of up to 5% for purchases made on Amazon along with a decent 1% cashback across all online and offline spends. The card is free for lifetime and you can apply for it via Amazon website/app. Here is all you need to know about the features of this card and how it compares with other cashback credit cards.
Key Highlights of Amazon Pay ICICI Bank Credit Card
| Annual Fee | Nil |
| Best Suited For | Shopping |
| Key Feature | 1% cashback on all transactions |
| Shopping Benefits for Amazon Prime Members | 5% cashback on Amazon spends |
| Shopping Benefits for Amazon Non-Prime Members | 3% cashback on Amazon spends |
Get Cashback on all your purchases
Amazon Pay ICICI Bank Credit Card offers cashback on all transactions. The different cashback earnings are given below:
| Category | Cashback |
| Amazon Prime Members | 5% cashback on all purchases made on Amazon |
| Amazon Non-Prime Members | 3% cashback on all purchases made on Amazon |
| Amazon Pay Merchants* | 2% cashback on transactions made for flight bookings, recharges, bill payments, gift card, and spends on Amazon Pay partner merchants |
| Other Spends | 1% cashback |
*Amazon Partner merchants include brands like Yatra, BookMyShow, FreshMenu, Faasos, Byju’s, Urban Ladder etc.
On average, the card is decent as a cashback credit card but is great as a credit card used for shopping at Amazon.
*Please note that the cashback earned will be in the form of Amazon Pay Balance.
Things to Note-
Amazon Pay ICICI Bank Credit Card is lifetime-free, which means that the card charges zero annual or joining fee. If you do not wish to pay annual fee for your credit card but still wish for cashback in return, this card can be the best option.
With Amazon Pay ICICI Bank Credit Card, you get the following additional benefits:
| SUITED FOR | NOT SUITED FOR |
|---|---|
| 1. Frequent Amazon shoppers 2. People who love to shop online and are looking for cashback | 1. People who shop at different merchants other than Amazon 2. People who prefer in-store shopping |
Amazon ICICI Credit Card Vs. Flipkart Axis Bank Credit Card
| Basis of Difference | Amazon Pay ICICI Bank Credit Card | Flipkart Axis Bank Credit Card |
|---|---|---|
| Annual Fee | Nil | Rs. 500 |
| Extra Cashback | Extra cashback for Prime Members | Same Cashback rate for all users |
| Universal Cashback | 1% | 1.5% |
| Cashback on Partner Brands | 2% cashback on Amazon Pay partner merchants | 4% cashback with Flipkart’s partner brands |
| Lounge Visit | No complimentary lounge visit | 4 complimentary visits per year to domestic airport lounge |
| Fuel Surcharge Waiver | 1% fuel surcharge waiver across all petrol pumps | 1% fuel surcharge waiver up to Rs.500 / month |
Amazon Pay ICICI Bank Credit Card-Fees and Charges
| Category | Amount |
|---|---|
| Joining Fee | Nil |
| Renewal Fee | Nil |
| Finance Charges | 3.5% to 3.8% P.M. / 42% – 45.6% P.A. |
| Late Payment Charges | For Statement Balance:
|
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Is My Current Cover Enough? How Do I Know for Sure?
Life has been a journey of accomplishments and financial milestones for you. As you enjoy the fruits of your hard work and see your life goals materialize, it’s essential to protect your legacy and the lifestyle you’ve built for your family. Uncertainties still exist, and …
Income Tax Return Guide – Details You Should Know
India’s Income Tax Laws are framed by the Government The Government imposes a tax on taxable income of all persons who are individuals, Hindu Undivided Families (HUF’s), companies, firms, LLP, association of persons, body of individuals, local authority and any other artificial juridical person. According to these …
Income Tax Slabs FY 2023-24
For several years, many people purchased life insurance simply as a tax-saving method. The truth is, life insurance plays a crucial role in every sound financial plan. Before we create financial plans for the upcoming financial year, let’s better understand the new rules and regulations. In February 2023, the finance minister outlined the budget for the upcoming year, which included a few changes to the new tax regime. The finance minister reduced the number of tax slabs and extended the standard deduction to the salaried class and pensioners as well.
Let’s better understand the Income Tax slabs under Union Budget 2023.
- New Income Tax Slabs as per Union Budget 2023:
Income Tax Slab Income Tax Rates Applicable for FY 2023-24 as per the new regime for HUF and all Individuals <₹ 3,00,000 No Tax ₹ 3,00,001 to ₹ 6,00,000 5% ₹ 6,00,001 to ₹ 9,00,000 10% ₹ 9,00,001 to ₹ 12,00,000 15% ₹ 12,00,001 to ₹ 15,00,000 20% >₹ 15,00,000 30%
- NOTES:
- The tax rates in the new tax regime remain the same across all categories, i.e. the Hindu Undivided Family and individuals up to 60 years of age, senior citizens above 60 years to 80 years of age, and super senior citizens above 80 years. Therefore, no increase of the basic exemption limit will benefit the senior and the super senior citizens in the new tax regime.
- Individuals with a net taxable income of up to ₹ 7 lakh will be eligible for tax rebate u/s 87A under the new tax regime. The rebate limit remains at ₹ 5 lakh for individuals who choose to pay tax under the old regime.
- Income tax slab rate for Old Tax Regime FY 2023-24:
The old tax regime differentiates between three age cohorts of tax-paying individuals.
Income Tax Slabs for Individuals below 60 years and HUF:
Income Tax Slab Tax Rates <₹ 2,50,000 NIL ₹ 2,50,001 to ₹ 5,00,000 5% ₹ 5,00,001 to ₹ 10,00,000 20% >₹ 10,00,000 30%
NOTES:
- The exemption limit of income tax is up to ₹ 2.5 lakh for all individuals, HUF and individuals below 60 years and NRIs for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
Income Tax Slabs for Individuals aged between 60 years and 80 years :
Income Tax Slab Tax Rates <₹ 3,00,000 NIL ₹ 3,00,001 to ₹ 5,00,000 5% ₹ 5,00,001 to ₹ 10,00,000 20% >₹ 10,00,000 30%
NOTES:
- The exemption limit on income tax is up to ₹3 lakh for senior citizens for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
Income Tax Slabs for Individuals above 80 years:
Income Tax Slab Tax Rates <₹ 5,00,000 NIL ₹ 5,00,001 to ₹ 10,00,000 20% >₹ 10,00,000 30%
NOTES:
- The exemption limit on income tax is up to ₹5 lakh for super senior citizens for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
- Surcharge for F.Y.2023-24:
Surcharge applicable as per tax rates are listed below across all categories mentioned above:
- 10% of Income Tax for income > ₹50 lakh
- 15% of Income Tax for income > ₹1 crore
- 25% of Income Tax for income > ₹2 crore
- 37%* of Income Tax for income > ₹5 crore
The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%. The surcharge rate for an Association of Persons (AOP) with all members as a company, shall be capped at 15%.
It is to be noted that relevant marginal relief from surcharge is available.
2023 Union Budget Personal Income Tax Highlights
- The standard deduction benefit of ₹ 50,000 is now extended to the salaried class and pensioners under the new regime.
- The new regime has become the default tax system. However, taxpayers can choose to continue to calculate and pay taxes as per the old regime.
- The highest surcharge levied on personal income tax has been reduced significantly from 37% to 25%.
- The leave encashment limit on retirement for non-governmental salaried employees has increased from ₹ 3 lakh to ₹ 25 lakh.
- Deduction from capital gains on investment in a residential house is now capped at ₹ 10 crore.
- Income from insurance policies (other than ULIP) having premium or aggregate of premium above ₹ 5, 00,000 in a year will be taxed. This income shall be taxable under the head “income from other sources”. Deduction shall be allowed for premium paid if such deduction is not claimed earlier under any other provisions of the Act. The new rule shall apply for policies issued on or after 1st April, 2023. However, the income is proposed to be exempt if received on the death of the insured person.
Frequently Asked Questions (FAQ)
- Is filing income tax returns compulsory?
As per income tax laws, filing income tax returns is mandatory for individuals whose total income during the financial year exceeds the basic exemption limit of more than the gross total income of ₹ 2,50,000 under the old regime or ₹ 3,00,000 under the new regime. You will be attracting penalties by not filing returns. Also, it will hamper your chances of getting a loan, when you apply for a visa for travel purposes, or even property registration.
Do note that the exemption limit for an individual depends on his/her age. Citizens will have to inform the government mandatorily about income earned irrespective of the tax regime in Financial Year 2023-24.
- Are there separate slab rates for different categories?
Individual taxpayers have to pay tax based on their age and income. For the financial year 2023-24, income tax slab rates are divided into the old regime, which has higher tax rates with three tax slabs and different deductions for senior and super senior citizens, and the revised new regime with lower tax rates.
- Is there any standard deduction for FY 2023-24?
A standard deduction is a flat deduction of ₹ 50,000 to individuals earning a salary or pension income under the head “Salaries”, irrespective of expenses or investments by the individuals. From FY 2023-2024, this deduction can be claimed under both regimes.
- What is the 80C limit for 2023-24?
Section 80C is a popular section among taxpayers as it allows to reduce taxable income up to a maximum deduction of ₹ 1.5 lakh by making tax-saving investments like life insurance premium or incurring eligible expenses like school tuition fees which are available only for Individuals and HUFs. However, deduction is not allowed if the taxpayer opts for the new tax regime.
Existing New Regime Proposed New Regime Income Tax Income Tax < ₹ 2,50,000 NIL < ₹ 3,00,000 NIL ₹ 2,50,001 to ₹ 5,00,000 5% ₹ 5,00,001 to ₹ 7,50,000 10% ₹ 3,00,001 to ₹ 6,00,000 5% ₹ 7,50,001 to ₹ 10,00,000 15% ₹ 6,00,001 to ₹ 9,00,000 10% ₹ 10,00,001 to ₹ 12,50,000 20% ₹ 9,00,001 to ₹ 12,00,000 15% ₹ 12,50,001 to ₹ 15,00,000 25% ₹ 12,00,001 to ₹ 15,00,000 20% > ₹ 15,00,001 30% > ₹ 15,00,001 30%
- What are the Income tax slab rates under existing new regime and proposed new regime for FY 2023-24?
The Union Budget 2023 reduces the number of tax slabs under the new regime. We can compare the current new regime with the proposed new regime as follows:
- How can individuals opt for the new tax regime? Understanding the exemption
inclusions and exclusions
Taxpayers choosing to file tax under the new tax regime will have to forgo a few exemptions and deductions that were available in the existing old tax regime. Although there are 70 deductions and exemptions that taxpayers need to forgo, below are the most common ones:
What’s not allowed under new tax rate regime?
- Leave Travel Allowance (LTA) for salaried employees
- House Rent Allowance (HRA)
- Children education allowance
- Helper allowance
- Interest on housing loan (Section 24)
- Other special allowances [Section 10(14)]
- Professional tax
- Donation to Political party/trust, etc
What’s retained under new tax rate regime?
- Retirement benefits, gratuity etc.
- Conveyance allowance for expenditure incurred for travelling for duties of an office
- Transport allowance for specially-abled people
- Education scholarships
- Retrenchment compensation
- Investment in Notified Pension Scheme under section 80CCD(2)
- Depreciation u/s 32 of the Income-tax act except additional depreciation.
- Which entities are required to file income tax returns mandatorily?
As per the Income Tax Act, it is mandatory to file ITRs for these entities in India:
- Individuals who want to claim an income tax refund
- Those who want to set off and carry forward losses under a head of income
- Individuals with assets or financial interests located outside of India
- Individuals gaining income from property held under a trust for religious, charitable, or political purposes.
- NRIs whose income accrued in India exceed ₹ 2.5 lakh
- Is there any standard deduction for FY 2023-24?
Yes, the Income Tax Act allows a standard deduction of ₹ 50,000 to the income taxable under the head ‘Salaries’ for FY 2023-24.
Standard deduction is a tax benefit that can be claimed irrespective of the actual amount spent on Transport Allowance and Medical Allowance and is applicable to individuals earning a salary or pension income. The limit of standard deduction was set at ₹ 50,000.
- What is the 80C limit for 2023-24?
The exemption under section 80C of the Income Tax Act can be availed of up to ₹1.5 lakh. Section 80C of the Income Tax Act, 1961, helps you save taxes on various investments and expenses you make during the financial year. Fixed Deposits in Bank, Public Provident Fund deposits (PPF), investment in National Pension Scheme (NPS), Employees Provident Fund (EPF) and Equity Linked Savings Schemes (ELSS) are some of the avenues open for you to avail of deductions under section 80C.
However, if you opt for the new tax regime announced in the Union Budget in 2020, Section 80C deductions claimed for provident fund contributions, life insurance premium, school tuition fee for children and various specified investments such as ELSS, NPS, PPF cannot be claimed.
Union Budget 2023 Highlights and Important Points
On 1st February 2023, the Finance Minister, Nirmala Sitharaman, outlined the budget for the upcoming fiscal year. The new budget serves as the blueprint for an inclusive and empowered economy. The budget listed seven main priorities, namely: Let’s look at the main highlights of the …
Why You Need Critical Illness and Disability Insurance
Can you ever be sure that you’re truly financial stable? Here are five signs that can help you answer this question. One of your greatest assets is your ability to earn a living, cover your household expenses and save for the future. But what if …
The Ultimate Guide to Affordable Health Insurance
Introduction
In today’s fast-moving world, staying healthy is very important. However, without proper health insurance, accessing quality healthcare can be a daunting and expensive task. This blog aims to unravel the mysteries surrounding affordable health insurance, offering practical solutions that will empower individuals and families to make informed decisions about their healthcare coverage.
Exploring the Current Health Insurance Landscape
Understanding the current healthcare system and the role of insurance providers is essential in navigating the complex world of health insurance. Factors such as evolving medical technology, increasing administrative costs, and the rising demand for healthcare services all contribute to the escalating costs of health insurance. Moreover, individuals and families face numerous challenges in finding coverage that is both comprehensive and affordable.
Recently, healthcare reforms have been implemented with the aim of improving access to health insurance for all. While these reforms have had positive impacts, they also affect insurance premiums. Understanding these reforms is crucial in assessing the affordability and feasibility of different insurance options.
Key Strategies for Reducing Health Insurance Costs
To unlock affordable health insurance, it is important to evaluate your healthcare needs and budget. By carefully assessing your specific requirements, you can avoid paying for unnecessary coverage. Additionally, comparing different insurance plans is instrumental in finding the best fit for your needs. Some options to consider include employer-sponsored plans, marketplace plans, and public programs like Medicaid and Medicare.
Utilizing preventive care and wellness programs can significantly reduce healthcare costs in the long run. By focusing on proactive measures to maintain good health, individuals can avoid expensive medical treatments and procedures. Understanding deductibles, co-payments, and co-insurance is also vital in optimizing your health insurance coverage, ensuring that you are informed about the costs associated with each policy.
Furthermore, taking advantage of tax breaks and subsidies can make health insurance more affordable. Understanding the eligibility criteria and requirements for these financial assistance programs can help individuals and families access the coverage they need without breaking the bank.
Navigating the Health Insurance Marketplace
The Health Insurance Marketplace provides a centralized platform for individuals and families to explore and enrol in various insurance plans. Understanding how the Marketplace works and how to navigate its intricacies is crucial in finding the best coverage for your needs. Enrolling in the Marketplace allows individuals to access subsidies and tax credits, making health insurance more affordable.
Different metal tiers are available in the Marketplace, each offering varying levels of coverage and cost-sharing. Understanding these tiers and the coverage options they provide is essential for making an informed decision. Comparing plans based on your specific needs and preferences will ensure that you find the most suitable option.
Additional Resources for Affordable Health Insurance
In addition to the Health Insurance Marketplace, there are various state-based health insurance programs that offer affordable coverage options. These programs take into account the unique needs and circumstances of individuals in specific states, providing tailored solutions.
Non-profit organizations also play a crucial role in providing assistance and resources for individuals and families seeking affordable health insurance. These organizations offer guidance, education, and support, helping individuals understand their options and navigate the insurance landscape.
Health savings accounts and flexible spending accounts are additional tools that can assist in managing healthcare costs. These accounts allow individuals to set aside pre-tax money to be used for healthcare expenses, providing a strategic approach to saving and budgeting for healthcare needs. Furthermore, prescription drug assistance programs help individuals access medications at reduced costs, ensuring that necessary treatments are within reach.
Overcoming Common Challenges in Accessing Affordable Health Insurance
Eligibility concerns and pre-existing conditions can pose challenges when seeking affordable health insurance. Understanding the requirements and options available for individuals with pre-existing conditions is crucial in accessing the coverage needed for comprehensive healthcare.
Navigating open enrolment periods can be overwhelming, especially when unexpected life events occur outside of these designated timeframes. Understanding the rules and exceptions for special enrolment periods is important in ensuring you have the coverage you need when you need it.
In cases of denied coverage, individuals have the right to appeal decisions made by insurance providers. Familiarizing oneself with the appeals process and understanding the steps involved is crucial for addressing denied claims and seeking fair resolutions.
Evaluating the Quality of Affordable Health Insurance Plans
While affordability is a crucial factor in selecting health insurance, it is equally important to assess the quality and benefits offered by different plans. Analysing the coverage options, network options, and provider choices is crucial in ensuring access to quality healthcare. Additionally, evaluating the accessibility of healthcare facilities and specialists within each plan is essential for ensuring that necessary medical services are within reach.
Long-term Strategies for Sustainable Health Insurance Costs
Maximizing your health and well-being is a proactive approach to minimizing health risks and reducing long-term healthcare costs. By investing in preventive care and early disease detection, individuals can identify potential health issues before they become major concerns, ultimately reducing the need for expensive treatments.
Exploring alternative health insurance models that emphasize wellness and holistic approaches can also be a viable option. These alternative models focus on proactive healthcare strategies, promoting healthy lifestyles and providing access to integrative health services.
Advocating for policy changes and increased transparency in the healthcare and insurance industry is essential for achieving long-term affordability. By demanding more accountability and transparency from insurance providers and policymakers, individuals can play an active role in shaping the future of health insurance.
Conclusion
Unravelling the secrets to affordable health insurance is a journey that requires knowledge, research, and choice. By following the actionable steps outlined in this guide, individuals and families can unlock affordable health insurance options that cater to their unique needs. Taking charge of healthcare options empowers individuals to prioritize their well-being, ensuring that quality healthcare remains accessible and affordable for all. Remember; sharing knowledge and resources with others is an invaluable way to support one another on this quest for affordable health insurance.
Frequently Asked Questions (FAQs)
- What is the best strategy for finding affordable health insurance if my employer does not offer coverage?
- Exploring options in the Health Insurance Marketplace and considering government programs like Medicaid or the Children’s Health Insurance Program (CHIP) can help you find coverage that suits your needs and budget.
- Can I receive financial assistance for health insurance if my income is low?
- Depending on your income level, you may qualify for premium tax credits, cost-sharing reductions, or public programs like Medicaid.
- How can I estimate my healthcare costs and choose the most suitable plan?
- Assessing your healthcare needs and considering factors such as monthly premiums, deductibles, co-payments, and co-insurance can help you estimate your costs and find a plan that balances affordability with coverage.
- Can I switch health insurance plans outside of the open enrolment period?
- Generally, health insurance plans can only be switched during the open enrolment period. However, certain qualifying life events, such as marriage, having a baby, or losing employer-sponsored coverage, may trigger a special enrolment period.
- What should I do if my health insurance claim is denied?
- If your health insurance claim is denied, you have the right to appeal the decision. Familiarize yourself with the appeals process outlined by your insurance provider and gather all relevant documentation to support your case.
Best 5 Credit Cards for Beginners in India Upto Salary 3 Lakh
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