Tips to save IPO listing gains tax!
In the years 2023 and 2024, many IPOs brought huge earnings for the investors. But tax also has to be paid on this! What is the tax rule on booking listing gains from IPO? How can tax liability on listing gains be reduced? How will the tax be calculated on selling IPO shares?
For those who own a vehicle, motor insurance is a must-have. This is because a comprehensive motor insurance policy protects you not only from your own damage but also from third-party damages. While third party insurance cover is mandatory in India, comprehensive motor insurance is voluntary. It is advisable to go for a comprehensive cover as it gives you complete protection. However, many people avoid taking it because of the extra premium charges. If you also feel the pinch of high premium rates here are a few ways to reduce motor insurance premiums:
No Claim Bonus (NCB): For every claim-free year you are eligible for a discount when you renew the plan. This discount is termed NCB or no claim bonus. It is like a reward for good driving behaviour which starts by gaining a 20% discount for your first policy year. Following the first year, you gain an additional 5% for making no claims up to a maximum of 50% in the sixth consecutive year.
Add-ons: There is a long list of add-ons that your insurance policy offers while selling a policy such as zero depreciation cover, engine cover, key replacement cover, among others. Every add-on increases the insurance premium. Therefore, choose only those add-ons that you need and avoid taking others.
Anti-theft device: You get eligible for a discount if your vehicle has devices like anti-theft, GPS system, safety lock for gears, among others, provided they are endorsed by the Automotive Research Association of India or ARAI. While buying insurance you need to intimate your insurer about these devices to avail of the discount.
Deductibles: You can also opt for deductibles for lowering your premium rates. Under the deductible option, you pay the claim amount up to a certain limit above which the cost is borne by your insurer.
Insured Declared Value (IDV): You can opt for a lower IDV to reduce your insurance premium. But this is not advisable as not having adequate IDV will expose you to the risk of underinsurance if there is a total loss claim.
Policy renewal: Your policy lapses if you don’t renew your plan on time resulting in loss of NCB benefits. After the policy gets lapsed, it is considered as break-in policy and the new policy is issued only after the inspection. Hence, it is always advisable to pay your renewal premium on time to save yourself from necessary hassles.