Want a bigger cheque? Try these hot tips

NEW DELHI: Finance minister Nirmala Sitharaman proposed a massive spending boost to lift the pandemic-hit economy in Union Budget 2021-22. Here are some of the ways in which you can get a fatter cheque in light of the budget.

Buy gold in black & white
Buy RBI-issued Sovereign Gold Bonds rather than physical gold for investment purposes. Investors pay the issue price, which is based on current gold value and the bonds are redeemed on maturity at prevailing gold prices. Unlike physical gold investment, you will get interest @2.5% p.a. on money invested in bonds.


When you sell your physical gold, the gain is subject to capital gains tax. However, there is no capital gains tax if Sovereign Gold Bonds are held till maturity.

Pay that premium
You can claim deduction of up to Rs 25,000 (Rs 50,000 if senior citizen is covered) under Section 80D for medical insurance paid for you and your family. If you insure your parents, you get additional deduction of up to 25,000 ( 50,000 if they are above 60).

No such deduction is allowed for parents-in-law as yet. If you have paid premium on your policy providing cover for more than one year, the deduction shall be allowed on a proportionate basis, subject to the specified monetary limit.

EPF advance not taxable
Considering the need of funds by individuals to deal with the pandemic, the government announced that members of an Employee Provident Fund (EPF) scheme can claim ‘non-refundable advance’ from their EPF account to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount outstanding in the EPF account, whichever is less.

This non-refundable advance received is not taxable.