Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<keyword id="19896016" type="General" weightage="20" keywordseo="New-Delhi" source="keywords">New Delhi</keyword>: The 54th Meeting of the <keyword id="21275205" type="General" weightage="20" keywordseo="Goods-and-Services-Tax-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="Goods and Services Tax Council" meta.hostid="261" meta.entityid="Goods and Services Tax Council">Goods and Services Tax Council</keyword> or GST Council, will be held on 9th September 2024 in New Delhi, the GST Council said in a post on social media platform "X" on Tuesday. On June 22, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> Nirmala Sitharaman said that the next meeting of the GST Council will take place in mid to late August. The aim of this meeting will be to discuss the pending issues of the last meeting. The council is expected to discuss rate rationalisation and compliance, among others. The GST Council, consisting of the Union Finance Minister and representatives from all States and Union Territories, was established to make decisions on various aspects of GST, including <keyword id="20452955" type="General" weightage="20" keywordseo="tax-rates" source="keywords">tax rates</keyword>, exemptions, and administrative procedures. It played a crucial role in shaping the GST framework in India. The last meeting of the GST Council was held on 22 June 2024 this year. During the meeting, the council recommended relaxation to taxation, Input Tax Credit (ITC) claims and demand notices. The GST Council proposes exemptions for specific services offered by Indian Railways to the general public, as well as for intra-railway transactions. During the 53rd meeting of the council, it proposed an exemption for specific services offered by Indian Railways to the general public, as well as for intra-railway transactions. The sale of platform tickets and services such as retiring rooms, waiting rooms, cloakroom facilities, and battery-operated car services are now exempt from GST. The 53rd council meeting was marked by several key decisions aimed at easing the compliance burden and providing relief to taxpayers. "Today's <keyword id="20115983" type="General" weightage="100" keywordseo="GST-Council-meeting" source="keywords">GST Council meeting</keyword> has taken a lot of decisions on trade facilitation, easing compliance burden and relief to taxpayers in terms of compliance easing out," the Finance Minister had said. The GST Council recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. The Council, in its June 22 meeting, approved an extension for availing input tax credit (ITC) on any invoice or debit note. To curb government litigation, the Council has recommended setting monetary thresholds for filing appeals by departments: Rs 20 lakh for the GST appellate tribunal, Rs 1 crore for high courts, and Rs 2 crore for the Supreme Court. In a move to assist small taxpayers, the Council, in its last meeting, extended the deadline for furnishing returns from April 30 to June 30 for the fiscal year 2024-25 and subsequent years. The Council, in its last meeting, recommended the phased rollout of biometric-based Aadhaar authentication for GST registration applicants across India. The Council recommended a uniform GST rate of 12 per cent on all milk cans, regardless of their material (steel, iron, or aluminium), to eliminate disputes. The Finance Minister, during the last GST meeting, reiterated the central government's intent to bring petrol and diesel under the Goods and Services Tax (GST) framework. She highlighted that the groundwork for this inclusion was laid during the initial implementation of GST and emphasized that the decision now lies with the state governments. The central government has long maintained that incorporating petrol and diesel into GST would streamline tax rates and potentially reduce prices for consumers.

54th GST Council meeting to take place on September 9 in New Delhi

<ul class="summary-list"><li>The 2024 election will affect taxes, with key policy changes expected in 2025 no matter who wins.</li><li>Trump's plans could mean tax hikes for lower earners; Harris' proposals would target higher earners.</li></ul>Election Day is fast approaching, and no matter who wins, you'll probably see changes to your tax bill in 2025.In the fourth installment of BI's five-part series in the final stretch before the election, Business Insider is looking at the ways each candidate's policies could affect how much you pay in taxes. (Read <a target="_blank" rel="" class="" href="https://www.businessinsider.com/market-impact-presidential-election-scenarios-trump-harris-stocks-bonds-crypto-2024-10">part one</a> about investments, <a target="_blank" rel="" class="" href="https://www.businessinsider.com/cost-expensive-goods-price-impact-presidential-election-scenarios-trump-harris-2024-10">part two</a> about costs, and <a target="_blank" class="" href="https://www.businessinsider.com/housing-affordability-supply-impact-presidential-election-scenarios-homebuyers-harris-trump-2024-10">part three</a> about housing.)Each of the three sections below represents a key segment of the taxpaying population: low- and middle-income earners, high-income earners, and businesses. BI will unpack how a Trump or Harris presidency is expected to affect all three groups.<h2 id="340d6951-a382-4d10-927e-fbfb8a85b7a9">Low- and middle-income earners</h2>Under Trump's proposal, lower- and middle-income Americans could see some tax reductions, especially if they're trying to pay off a car or have a job that relies primarily on tips. Trump has proposed extending his slew of tax cuts from the Tax Cuts and Jobs Act of 2017 — also known as the "Trump tax cut." He's also seeking to eliminate taxes on <a target="_blank" class="" href="https://www.businessinsider.com/tax-tips-overtime-trump-proposals-income-money-election-2024-10">tips, overtime</a>, and <a target="_blank" class="" href="https://www.businessinsider.com/trumps-tax-plan-social-security-retirement-medicare-2024-8">Social Security benefits</a>, as well as making <a target="_blank" class="" href="https://www.businessinsider.com/trump-speech-detroit-new-car-loan-interest-tax-proposal-2024-10">car interest payments tax deductible</a>.Based on an analysis from the left-leaning Institute on Taxation and Economic Policy, keeping the income-tax cuts from the TCJA alone could mean a tax reduction of just over $1,000 for the middle 20% of Americans.But another part of Trump's tax policy — his plan to levy universal tariffs on all US imports — could end up undercutting this positive impact. Economic <a target="_blank" href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4834397">analyses</a> have found that those tariffs could offset the tax benefits and then some for lower-earning Americans.Factoring in the cost of tariffs, Trump's tax package could result in higher tax bills for everyone but the top 5%, the Institute on Taxation and Economic Policy <a target="_blank" href="https://www.businessinsider.com/trump-tax-plan-tarriffs-benefits-top-earners-study-2024-10">found.</a>"A lot of those tariffs do end up harming lower-income families and taxpayers who buy goods from abroad," Garrett Watson, a senior policy analyst at the right-leaning Tax Foundation, said.Harris has <a target="_blank" class="" href="https://www.businessinsider.com/jd-vance-expanded-child-tax-credit-proposal-pro-family-2024-8">proposed</a> an expanded earned-income tax credit aimed at lower-income earners, and she wants to restore and expand upon a more generous child tax credit, similar to the one implemented under Biden's pandemic-relief bill in 2021. The <a target="_blank" href="https://taxpolicycenter.org/taxvox/key-harris-tax-credits-would-largely-benefit-low-and-middle-income-households">Tax Policy Center estimates</a> that Harris' proposals could bring down household taxes by an average of $750 — with the lowest-income earners seeing their after-tax incomes grow the most.Harris' and Trump's proposals share some key similarities: Both have proposed some version of eliminating taxes on tips. While Harris hasn't outlined specifically what she'd preserve from the TCJA, she's maintained Biden's promise not to raise taxes on those making below $400,000. The Trump campaign has also shown <a target="_blank" class="" href="https://www.businessinsider.com/jd-vance-expanded-child-tax-credit-proposal-pro-family-2024-8">interest in bolstering the child tax credit</a>.<h2 id="cbdc640e-2340-4bd9-af1d-48c2bab5e227">High-income earners</h2>If Trump makes all the TCJA's income-tax provisions permanent, middle-income Americans would get a tax break of about $1,000, while the top 0.1% of earners would see a cut of nearly $280,000, a <a target="_blank" href="https://taxpolicycenter.org/taxvox/those-making-450000-and-would-get-nearly-half-benefit-extending-tcja">Tax Policy Center analysis</a> found.Another boon for wealthy Americans would be an extension of the break in estate taxes. The TCJA <a target="_blank" class="" href="https://www.businessinsider.com/bernie-sanders-is-targeting-wealthy-with-two-new-tax-measures-2021-3">doubled</a> the amount of inherited wealth that could be considered tax-exempt, from around $5.5 million in 2017 to around <a target="_blank" class="" href="https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax">$11.2 million in 2018</a>.Trump has <a target="_blank" href="https://truthsocial.com/@realDonaldTrump/posts/113154156175795473">floated</a> lifting the $10,000 cap on the State and Local Tax deduction, known as SALT, from his 2017 tax bill. SALT mostly impacts affluent taxpayers in blue states with high local taxes, and a repeal of the cap would restore a tax break mostly enjoyed by higher earners in places like California, New Jersey, and New York, said Benjamin Page, a senior fellow at the Urban-Brookings Tax Policy Center.Harris' tax proposals target higher earners to help offset costs — if the TCJA were to expire for taxpayers making over $400,000, the top marginal rate would increase from <a target="_blank" href="https://www.brookings.edu/articles/which-provisions-of-the-tax-cuts-and-jobs-act-expire-in-2025/#:~:text=For%20example%2C%20the%20TCJA%20cut,levels%20if%20the%20TCJA%20expires.">37% to 39.6%</a>. She also supports two measures that have gained traction during the Biden administration: targeting ultrawealthy investors' capital gains and imposing a minimum income tax on billionaires."Unlike the Trump campaign, the other shoe for the Harris-Walz campaign comes on the high end," Ernie Tedeschi, the director of economics at the Yale Budget Lab and the former chief economist at the White House Council of Economic Advisers, said.Harris has proposed bumping the tax on <a target="_blank" href="https://www.businessinsider.com/what-is-capital-gains-tax-2018-8">capital gains</a> for Americans making $1 million or more from 20% to 28%. That would mean a higher tax rate on the money wealthy Americans make when they sell off assets like real estate or stocks — a <a target="_blank" href="https://www.businessinsider.com/capital-gains-taxes-hike-rate-over-1-million-brian-deese-2021-4">key source of income</a> for more affluent taxpayers.Harris also supports a minimum income tax for billionaires, a proposal <a target="_blank" href="https://www.businessinsider.com/biden-billionaire-income-tax-could-look-like-withholding-on-paychecks-2022-3https://www.businessinsider.com/biden-billionaire-income-tax-could-look-like-withholding-on-paychecks-2022-3">Biden has touted</a>. She hasn't released specifics on what that would look like.<h2 id="a4c38432-f9ca-4a2d-ab93-24e1a7b76af9">Big- and small-business owners</h2>Harris wants to bump up the corporate tax rate from <a target="_blank" href="https://kamalaharris.com/wp-content/uploads/2024/09/Policy-Book-Economic-Opportunity.pdf">21% to 28%</a>, while Trump has proposed lowering it from <a target="_blank" href="https://www.crfb.org/blogs/donald-trumps-proposal-lower-corporate-tax-rate-15">21% to 15%</a> for firms that make their products in the US.Harris has <a target="_blank" href="https://www.businessinsider.com/state-taxes-deductions-salt-relief-house-republicans-bill-2023-7">proposed</a> some specific breaks for small businesses. Her key proposals include beefing up the startup deduction for new businesses from $5,000 to $50,000, creating a standard deduction for small businesses, and incentivizing local governments to ease up red tape, such as <a target="_blank" class="" href="https://kamalaharris.com/a-new-way-forward/#:~:text=Vice%20President%20Harris%20and%20Governor%20Walz%20will%20work%20to%20reduce,and%20speed%20implementation%20of%20multi%20state%20or%20universal%20licensing%20recognition.">doing away</a> with barriers to licensing and making it easier to recognize credentials across states."Many startups may be able to deduct the cost of those startup expenses more quickly and more fully, which could encourage, at least on that margin, a little bit more startup activity," Watson said.Meanwhile, Tedeschi said Trump's tariffs could weigh on small businesses. Importers might have to choose between raising prices or absorbing the cost through lower margins.But Tedeschi said both candidates' proposals to eliminate taxes on tips could ultimately be a boon for small businesses."The employer's going to be able to pay a little bit less for those jobs, given the demand for them," he said. "The tipped workers are probably going to end up fine because again, their tips are tax-free."Trump's proposal to <a target="_blank" href="https://www.businessinsider.com/tax-tips-overtime-trump-proposals-income-money-election-2024-10">eliminate taxes on overtime pay</a> could also benefit small businesses by allowing them to reconfigure how they schedule and pay workers.One question mark for both campaigns is a TCJA provision that allows some business owners to deduct their business income from their taxable income. Democrats in Congress are hoping to preserve the deduction for business owners making under $400,000 but change it for those above that threshold, a Senate Finance Committee aide told BI.

What a Trump or Harris presidency would mean for your tax bill

Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword> hailed the seven-year journey of <keyword id="19922145" type="General" weightage="20" keywordseo="Goods-and-Services-Tax" source="keywords">Goods and Services Tax</keyword> (<keyword id="19951327" type="General" weightage="100" keywordseo="GST" source="keywords">GST</keyword>). Quoting a newspaper report, PM tweeted on the social media platform "X" that GST has improved the lives of 140 crore <keyword id="19916609" type="General" weightage="20" keywordseo="Indians" source="keywords">Indians</keyword>. "For us, reforms are a means to improve the lives of 140 crore Indians. After the introduction of GST, goods for household use have become much cheaper." The PM also highlighted that after the implementation of GST, the <keyword id="20044873" type="General" weightage="20" keywordseo="savings" source="keywords">savings</keyword> of the poor and the common man have increased as the GST has reduced <keyword id="20018720" type="General" weightage="20" keywordseo="taxes" source="keywords">taxes</keyword> on various <keyword id="20447338" type="General" weightage="20" keywordseo="household-items" source="keywords">household items</keyword> like flour, curd, detergent, etc. He said, "This has resulted in significant savings for the poor and common man. We are committed to continuing this journey of reforms to transform people's lives". The Goods and Services Tax will complete its seven years on July 1, it was implemented in 2017. After its implementation, the tax has reduced on several products and services used by the common man. As per the Central Board of Indirect Tax and Customs, post GST various daily household items have become cheaper. It includes items like flour, television, detergent, hair oil, soap etc. The GST has amalgamated a large number of central and state taxes into a single tax. It also mitigated the ill effects of cascading or double taxation in a major way and paved the way for a common national market. From the consumers' point of view, the biggest advantage is in terms of reduction in the overall tax burden on goods. The Introduction of GST has also made Indian products more competitive in the domestic and international markets owing to the full neutralisation of input taxes across the value chain of production. On June 22, <keyword id="19956758" type="General" weightage="20" keywordseo="Finance-Minister" source="keywords">Finance Minister</keyword> <keyword id="19916618" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="keywords">Nirmala Sitharaman</keyword> announced that the next meeting of the Goods and Services Tax (GST) Council is tentatively scheduled for mid-to-late August. The GST Council proposed exemptions for specific services offered by <keyword id="19909154" type="General" weightage="20" keywordseo="Indian-Railways" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Railways" meta.hostid="261" meta.entityid="Indian Railways">Indian Railways</keyword> to the general public, as well as for intra-railway transactions. The GST Council recommended waiving interest penalties on demand notices issued under Section 73 of the GST Act for fiscal years 2017-18, 2018-19, and 2019-20. This section pertains to cases not involving fraud, suppression, or misstatement. Taxpayers who pay the full tax amount demanded in the notice by March 31, 2025, will benefit from this waiver.The Council approved an extension for availing input tax credit (ITC) on any invoice or debit note.

Seven years of GST has lowered taxes and improved lives of 140 crore Indians: PM

Union Finance Minister <keyword id="129243" type="General" weightage="20" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> on Saturday morning chaired a <keyword id="20255269" type="General" weightage="20" keywordseo="pre-budget-meeting" source="keywords">pre-budget meeting</keyword> with Finance Ministers of all States and Union Territories. The Pre-Budget Meeting is organised by the Ministry of Finance and Corporate Affairs with Finance Ministers of all the States and Union Territories (with Legislature) to take suggestions for the upcoming <keyword id="20387181" type="General" weightage="20" keywordseo="Union-Budget-2024-25" source="keywords">Union Budget 2024-25</keyword>. Ministers of State along with other stakeholders are participating in the meeting and visuals showed Uttar Pradesh finance minister Suresh Kumar Khanna, and finance minister of Rajasthan Diya Kumari at the Bharat Mandapam venue before the meeting commenced this morning. The Union Finance Ministry had begun consultations on the budget a few days ago with different stakeholders of economy. Sitharaman has met economists, finance and capital market experts and industry bodies. Sitharaman chaired the first pre-budget consultations with leading economists on June 19. The meeting was attended by Union minister of State for Finance Pankaj Chaudhary, the finance secretary, secretaries of the departments of economic affairs, revenue, financial services and corporate affairs and the chief economic adviser. Meanwhile, Sitharaman will also chair the 53rd <keyword id="19922145" type="General" weightage="20" keywordseo="Goods-and-Services-Tax" source="keywords">Goods and Services Tax</keyword> (GST) Council Meeting scheduled in the second half of the day. This is the first meeting of the <keyword id="19994390" type="General" weightage="100" keywordseo="GST-Council" source="keywords" meta.keywordsubtype="org" meta.entityname="GST Council" meta.hostid="261" meta.entityid="GST Council">GST council</keyword> after the formation of the new government. State finance ministers will also be present at the 53rd meeting of the Goods and Services Tax Council. As is the norm, the GST Council gets together to discuss issues pertaining to the GST regime, such as tax rates, modifications to policies, and administrative challenges. The Council is a key player in shaping India's indirect tax system, making sure that it facilitates company and citizen tax relief while also being in line with the country's economic objectives. The information on the agenda of Council meeting is not yet in public domain. However, the decisions and recommendations arising from the 53rd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall dynamics. Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of the implementation of GST as per the provisions of the GST (Compensation to States) Act, 2017 for five years. Meanwhile, preparation has commenced for the Union budget 2024-25, the first for the third term of the Prime Minister Narendra Modi-led <keyword id="22141478" type="General" weightage="20" keywordseo="National-Democratic-Alliance-government" source="keywords" meta.keywordsubtype="org" meta.entityname="National Democratic Alliance government" meta.hostid="261" meta.entityid="National Democratic Alliance government">National Democratic Alliance government</keyword>.

Union Finance Minister Sitharaman chairs pre-budget meeting with finance ministers of states, UTs; GST Council to meet later today

New Delhi [India], December 13 (ANI): A bill to align provisions of the <keyword id="4797043" type="General" weightage="80" keywordseo="central-goods-and-services-tax-act" source="Orion">Central Goods and Services Tax Act</keyword> with the <keyword id="12034100" type="General" weightage="50" keywordseo="tribunal-reforms-act" source="Orion">Tribunal Reforms Act</keyword> to initiate the administrative process for operationalisation of the <keyword id="6359833" type="General" weightage="100" keywordseo="goods-and-services-tax" source="Orion">Goods and Services Tax</keyword> Appellate Tribunals was introduced in <keyword id="6355187" type="General" weightage="50" keywordseo="lok-sabha" source="Orion">Lok Sabha</keyword> on Wednesday. The Central Goods and Services Tax (Second Amendment) Bill, 2023 was introduced in Lok Sabha by Finance Minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword>. The Bill seeks to amend the Central Goods and Services Tax Act, 2017. According to the statement of objects and reasons of the Bill, Section 109 of the Central Goods and Services Tax Act, 2017 (12 of 2017) provides for Constitution of Goods and Services Tax Appellate Tribunal, which is the second appellate authority within the Goods and Services Tax framework for hearing appeals against the orders passed by the Appellate Authority under the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Acts. It said that non-constitution of the Goods and Services Tax Appellate Tribunals is denying the taxpayers of second appellate remedy and consequently the taxpayers are seeking relief directly from the High Court, thereby burdening the High Courts. The amendments to sections 109 and 110 of the Central Goods and Services Tax Act, 2017 for enabling the creation of the Central Goods and Services Tax Appellate Tribunals were notified in July this year. "During the process of operationalisation of said Tribunal, it was observed that certain provisions of the Central Goods and Services Tax Act, 2017 need to be aligned with the Tribunal Reforms Act, 2021 (33 of 2021). The provisions of the Central Goods and Services Tax Act, 2017 are being aligned with the Tribunal Reforms Act, 2021, to initiate the administrative process for operationalisation of the Goods and Services Tax Appellate Tribunals at the earliest," it said. (ANI)

Bill to amend Central Goods and Services Tax Act introduced in Lok Sabha

The <keyword id="20449324" type="General" weightage="20" keywordseo="Finance-Bill" source="keywords">Finance Bill</keyword> 2024 was passed by <keyword id="19895394" type="General" weightage="20" keywordseo="Lok-Sabha" source="keywords" meta.keywordsubtype="org" meta.entityname="Lok Sabha" meta.hostid="261" meta.entityid="Lok Sabha">Lok Sabha</keyword> on Wednesday evening, with a few amendments moved by the government. Replying to the debate, Finance Minister Nirmala Sitharman said the approach of the government has been to bring greater simplification of <keyword id="19987671" type="General" weightage="20" keywordseo="tax" source="keywords">tax</keyword> laws and procedures and enable growth and employment in the country. She responded to points made by members. The Finance Minister clarified that in real estate, the roll over provisions have not been withdrawn and are applicable. She said if the capital gain in a property transaction is invested in buying another one or two properties up to a maximum value of Rs 10 crore, no capital gain tax is required to be paid on such profits. <keyword id="20619608" type="General" weightage="20" keywordseo="capital-gains" source="keywords">Capital gains</keyword> can also still be invested in bonds which are notified under Section 54 of the Income Tax Act up to a maximum of Rs 50 lakh annually and save on taxes. To give relief on budget proposals, Sitharaman also moved an amendment in the Finance Bill on the changes in the capital gains tax on <keyword id="20412285" type="General" weightage="20" keywordseo="property-transactions" source="keywords">property transactions</keyword>. The amendment implies that taxpayers can avail either a lower tax of 12.5% without indexation or a rate of 20% with indexation, if the property is acquired prior to July 23, 2024, the day union budget was presented in the Lok Sabha. Sitharaman clarified that taxpayers can compute taxes under both provisions and choose to pay tax under the scheme where lower tax is applied. Effectively, July 23, 2024, is now set as the cut-off date for the calculation of the capital gains versus the earlier cut-off of 2001. Sitharaman said she has proposed these amendments as some members have raised hypothetical calculation to prove that under new provisions taxpayers will have to pay higher taxes. The new tax proposals on capital gains tax was brought in to bring in parity among different asset classes like equities, mutual funds and real estate. In the Finance Bill introduced on July 23, the Finance Minister had proposed a flat long term capital gains tax of 12.5% with no <keyword id="943856" type="General" weightage="100" keywordseo="indexation-benefit" source="Orion">indexation benefit</keyword>s, prior to it property transactions used to be taxed at 20% with indexation benefit. The minister also clarified that the grandfathering proposal will be allowed only for individual and Hindu Undivided Family (HUF) taxpayers and not for companies and Non Resident Individuals. They have to pay flat 12.5% LTCG tax without indexation. The proposed amendment will apply not only on real estate transactions, but also on unlisted equity transactions, which are done before July 23, 2024. All such transactions will be taxed at 10% long term capital gains instead of FY24-25 budget provision of 12.5% tax. With the opposition members demanding removal of <keyword id="19951327" type="General" weightage="20" keywordseo="GST" source="keywords">GST</keyword> on health insurance, Sitharaman said tax was there on medical insurance even before GST was introduced. "There was already a Service Tax on medical insurance, before the GST was introduced. This is not a new tax, it was already there in all the states. Those protesting here, did they discuss regarding the removal of this tax in their states? Did they write to the Finance Ministers of their respective states about it and asked them to raise it in the GST Council where states have 2/3rd part? No, but they are protesting here. This is their double standards, this is their drama," she said. "Wrongful protests have happened recently, and comments have been passed on the basis of a news report which suggested that the 'Centre has pocketed Rs. 24,529 crores of health insurance premiums alone'. This is incorrect and highly misleading. The GST rate of 18% on health insurance comprises of 9% CGST and 9% SGST. Thus, of the total collections of Rs 24,529 crores from health insurance in the last 3 years, Half of it, Rs. 12,264 crores, went straight to the states as SGST. It doesn't even come to the Centre," she added. The minister said that apart from this, roughly 41%of the Centre's share of GST collection on health insurance is devolved back to the states again, as part of Tax Devolution as per the Finance Commission's formula. Sitharaman said the new income tax regime is simpler and offers lower income tax rates for individuals. "It gives flexibility to the taxpayer to see where he wants to put his money in the absence of exemptions which is available in the old income tax regime. The old regime has not been dissolved and is still an alternative to the new tax regime. It still offers benefits of various deductions such as interest on home loan, etc. Individuals without business income can choose between regimes once and can revert back too. Hence, a choice has been provided to assesse," she said. For the previous Assessment Year 2023-24 till December 31, 2023, about 3.8% of taxpayers opted for the new tax regime, which equates to 30.93 lakh individuals, from a total of 7.98 crore ITRs filed in the categories of ITR-1 to ITR-4, she said. "However, for the Assessment Year 2024-25 until July 31, 2024, there was a dramatic increase in adoption of the new regime, with approximately 72.8% of taxpayers choosing the new tax regime. This represents about 5.25 crore individuals, out of a total of 7.22 crore ITRs filed in the same category." Sitharaman said this shows a substantial shift in taxpayer preference towards the new tax regime, over the span of just one year. "Taxpayers opting for the new regime does not mean savings and investments are not happening in the economy by the middle-class. Due to growth in fintech, better awareness, and ease of investment due to UPI, e-KYC, progressive regulations, investments in mutual funds have increased tremendously. On an average, 17.88 lakh new folios have been added every month in the last 5 years since June 2019. The number of unique mutual fund investors has grown from under 1 crore in 2014 to about 4 crore today," she added. The Finance (No.2) Bill, 2024 was passed after amendments moved by opposition were negatived. Sitharaman said the vision of Prime Minister Narendra Modi has been to establish a simple, efficient and fair technology-driven taxation regime in the country. "So, simplification and ease of compliance for the taxpayer has been the primary objective. In the last 10 years, and this year, in the third term of PM Modi, the approach to taxation has been to simplify it, reduce the burden on taxpayer and make sure it is transparent and equitable," she said. "This year also, our approach has been that we bring in greater simplification of tax laws and procedures, and that we enable growth and employment in this country," she added. Sitharaman presented the Union Budget in Parliament on July 23. This is the first full budget of the NDA government led by PM Modi. The BJP-led alliance won a third successive term earlier this year. The Lok Sabha took up discussion on the Finance Bill after the Appropriation Bill for the central government's expenditure for 2024-25 was passed by the House on Monday. The Finance Bill will now be discussed by Rajya Sabha. The passage of bill will complete the budget process.

Lok Sabha passes Finance Bill, provision on LTCG tax on property transactions amended

<keyword id="19896016" type="General" weightage="20" keywordseo="new-delhi" source="keywords">New Delhi</keyword>, <keyword id="20791743" type="General" weightage="20" keywordseo="gross-goods-and-services-tax" source="keywords">Gross Goods and Services Tax</keyword> (<keyword id="19951327" type="General" weightage="20" keywordseo="gst" source="keywords">GST</keyword>) revenue collections for February rose by a robust 12.5 per cent year-on-year in February to Rs 1,68,337 crore, according to figures released by the <keyword id="19900485" type="General" weightage="20" keywordseo="finance-ministry" source="keywords">Finance Ministry</keyword> on Friday. The growth was driven by a 13.9 per cent rise in GST from domestic transactions and 8.5 per cent increase in GST from import of goods. GST revenue net of refunds for February 2024 is Rs 1.51 lakh crore which is a growth of 13.6 per cent over that for the same month last year. As of February 2024, the total gross GST collection for the current fiscal year stands at Rs 18.40 lakh crore, which is 11.7 per cent higher than the collection for the same period in FY 2022-23. The average monthly gross collection for FY 2023-24 works out Rs 1.67 lakh crore, exceeding the corresponding figure of Rs 1.5 lakh crore for the previous year. GST revenue net of refunds as of February 2024 for the current fiscal year is Rs 16.36 lakh crore which is a growth of 13.0 per cent over that for the same period last year. Breakdown of February 2024 Collections: *Central Goods and Services Tax (CGST): Rs 31,785 crore *State Goods and Services Tax (SGST): Rs 39,615 crore *Integrated Goods and Services Tax (IGST): Rs 84,098 crore, including Rs 38,593 crore collected on imported goods *Cess: Rs 12,839 crore, including Rs 984 crore collected on imported goods.

GST collections in February rise 12.5% to cross ₹1.68 lakh crore

<ul class="summary-list"><li>Bill Gates said the wealthy would be about two-thirds poorer if he controlled the tax system.</li><li>But the Microsoft cofounder said he wouldn't go as far as outlawing fortunes above a certain size.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/how-bill-gates-spends-fortune">Bill Gates</a> says if he set tax rates, the rich would be almost 70% poorer — but unlike Bernie Sanders, he would not outlaw billionaires.The Microsoft cofounder said that "under the tax system I would go for, the wealthy would have, say, a third as much." He revealed his ideal tax policy in an episode of his new Netflix series "What's Next? The Future with Bill Gates."The comment suggests Gates would like to see <a target="_blank" class="" href="https://www.businessinsider.com/elon-musk">Elon Musk</a>, the world's richest man with a net worth of $249 billion per the Bloomberg Billionaires Index, only have about $83 billion to his name.Apply the same calculation to Gates — who's sixth on the rich list — and his personal fortune would be just under $54 billion versus $161 billion. He <a target="_blank" class="" href="https://www.businessinsider.com/bill-gates-pay-billions-more-in-tax-in-charge-system-2024-9">recently told</a> The Independent that he would be "tens of billions of dollars poorer" if he wrote the tax code.The <a target="_blank" class="" href="https://www.businessinsider.com/bill-melinda-gates-stressful-work-culture-gates-foundation-book-excerpt-2024-8">Bill &amp; Melinda Gates Foundation</a> cofounder said it was "kind of wild" that billionaires exist, and he believed that fortunes of that size should be "given back to society, not just consumed."Gates argued that a rich country such as the US should have a better social safety net, and <a target="_blank" class="" href="https://www.businessinsider.com/bill-gates-thinks-wealthy-pay-more-tax-some-rich-agree-2024-1">raising taxes</a> would help fund universal access to healthcare as well as good-quality housing and education.He emphasized he's "not someone who thinks outlawing wealth above a certain size is the right way to go about it," but added that he's "biased" as a billionaire himself.In the episode, Sanders told Gates that he'd like to <a target="_blank" class="" href="https://businessinsider.com/facebook-ceo-mark-zuckerberg-responds-bernie-sanders-billionaires-shouldnt-exist-2019-10">get rid of billionaires entirely</a>. The <a target="_blank" class="" href="https://www.businessinsider.com/bernie-sanders-sarcastically-congratulates-billionaires-oligarchic-society-2022-2">progressive lawmaker</a> told the computing pioneer that while he was a "very innovative guy" and deserved to be financially rewarded for his contributions, billions of dollars was an excessive payout."How much do you deserve? Can you make it on a billion? Think you could feed the family? Probably. Pay the rent? Maybe," he quipped.<div type="image" title="Sen. Bernie Sanders talking outdoors in Washington DC" height="1333" width="2000" msid="113491266" hostid="261" sizebytes="131950"></div>The Vermont senator said it wasn't acceptable to him that a tiny elite wields such vast wealth and power."I have real concerns about what I would call uber-capitalism, and that is that <a target="_blank" class="" href="https://www.businessinsider.com/bill-gates-mackenzie-scott-billionaires-philanthropy-giving-pledge-charity-schmitz-2024-9">incredible concentration</a> of wealth and power in the hands of the few, and what it means to our whole society," he said.In contrast, "Shark Tank" star Mark Cuban <a target="_blank" class="" href="https://www.businessinsider.com/mark-cuban-wealth-billionaires-bill-gates-taxes-american-dream-netflix-2024-9">said</a> in the episode that billionaires show the American Dream is alive and well, and it's patriotic to get "filthy, stinkin' rich" then pay big taxes.

Bill Gates says the rich would be a lot poorer if he set taxes — but banning billionaires isn't on his agenda

<ul class="summary-list"><li>Former President Donald Trump proposed ending Social Security taxes for older adults.</li><li>Experts warn the policy could increase the deficit by $1.6 trillion, depleting Social Security and Medicare.</li></ul>America's older adults could see tax cuts under a new <a target="_blank" class="" href="https://www.businessinsider.com/category/donald-trump">Trump</a> Administration — but the policy risks shrinking Social Security funds sooner than expected.In a Wednesday interview with <a target="_blank" class="" href="https://www.foxnews.com/video/6360004194112?spark_wn=1#_intcmp=fnvpl_playlist_5_Trump_reacts_to_Kamala_Harris_tapping_Tim_Walz_as_running_mate:_'I_can't_believe_it'">Fox &amp; Friends</a>, the Republican presidential nominee said he plans to eliminate <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-social-security">Social Security</a> taxes for older adults. The taxes currently apply to all individuals with a household income above $25,000. This group pays income tax <a target="_blank" href="https://www-origin.ssa.gov/benefits/retirement/planner/taxes.html">on 50%</a> of their benefits, and people with a higher income are often taxed more.Trump's proposed change aims to help older adults living on a fixed income by ending the income tax on their monthly checks."We can do a lot of things to help the people," Trump told Fox &amp; Friends. "People on Social Security are being killed, and one of the things I'm doing is no tax for seniors on Social Security, and I'll get it done quickly."Trump had previously pitched his plan to eliminate taxes on Social Security, <a target="_blank" href="https://truthsocial.com/@realDonaldTrump/posts/112881452914352595">writing</a> on his social media platform Truth Social on July 31: "SENIORS SHOULD NOT PAY TAX ON SOCIAL SECURITY!"Some experts have criticized the plan. The Tax Foundation's Garrett Watson published a <a target="_blank" class="" href="https://taxfoundation.org/blog/trump-social-security-tax/">blog</a> on August 2 calling the proposal to remove income taxes from Social Security "unsound and fiscally irresponsible," arguing that doing so would increase the deficit by about $1.6 trillion over 10 years and cause the Social Security and Medicare trust funds to dry out quicker.According to the latest Social Security and Medicare Trustees report, the program will be able to <a target="_blank" class="" href="https://www.businessinsider.com/when-will-social-security-benefits-run-out-retirement-crisis-boomers-2024-5">pay out full benefits for 11 more years</a>, after which they will shrink if Congress doesn't act. The average monthly Social Security check in 2024 is about $1,780 a month, and some boomers rely on Medicare as their only source of health insurance.Business Insider has heard from boomers <a target="_blank" class="" href="https://www.businessinsider.com/social-security-no-savings-snap-benefits-debt-boomers-experiences-2024-6">without retirement savings</a>, many of whom are falling behind on bills or forgoing retirement entirely. According to the Census Bureau's Population Survey, over half of older adults in the US have an annual income of <a target="_blank" href="https://www.businessinsider.com/social-security-no-savings-snap-benefits-debt-boomers-experiences-2024-6">$30,000 or less</a>.While tax breaks might help in the short term, boomers are scared their Social Security benefits could be significantly cut in the next decade. With Trump's proposed policy, it's a risk."It scares us to death because we'll still be here, God-willing," a boomer in Illinois <a target="_blank" href="https://www.businessinsider.com/boomer-couple-lives-social-security-snap-no-retirement-savings-2024-6">previously told BI.</a> "How are we to survive?"<h2 id="bc6245e7-eca1-4e8f-ab0a-679752174266">Trump has vowed not to cut Social Security</h2>Trump has previously taken a strong position on Social Security — at times conflicting with members of his own party who have faced criticism from Democrats for calling for Social Security cuts. For example, Trump <a target="_blank" href="https://www.businessinsider.com/trump-gop-leave-medicare-social-security-cuts-from-debt-ceiling-2023-1">said</a> in January 2023 that "under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security.""Cut waste, fraud and abuse everywhere that we can find it and there is plenty, there's plenty of it," he said in a video message. "But do not cut the benefits our seniors worked for and paid for their entire lives. Save Social Security, don't destroy it."Additionally, Trump's platform that was adopted by the Republican National Committee <a target="_blank" href="https://www.businessinsider.com/trump-platform-social-security-medicare-retirement-age-end-inflation-2024-7">vowed to preserve Social Security</a> and Medicare benefits while ensuring there would be no cuts or changes to the retirement age. Older adults can start collecting Social Security at age 62 right now, and the official retirement age is typically 67, though it varies slightly by birth year.Even with Trump's pledge to protect retirees' benefits, Democratic lawmakers have continued to criticize the GOP and some of their proposals to change the program by raising the retirement age."As long as I am President, I will keep strengthening Social Security and Medicare and protecting them from Republicans' attempts to cut benefits Americans have earned," Biden said in a May <a target="_blank" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/06/statement-from-president-joe-biden-on-the-social-security-and-medicare-trustees-reports/#:~:text=As%20long%20as%20I%20am,cut%20benefits%20Americans%20have%20earned.">statement</a>.Vice President and Democratic nominee <a target="_blank" class="" href="https://www.businessinsider.com/biden-expanding-obamacare-without-congress-health-coverage-2022-4">Kamala Harris</a> has not yet released a policy outline on Social Security, but she is expected to continue Biden's work to expand Social Security benefits, as well as protect Medicare and the <a target="_blank" class="" href="https://www.businessinsider.com/biden-expanding-obamacare-without-congress-health-coverage-2022-4">Affordable Care Act</a>.

Trump wants to cut Social Security taxes for seniors. It's not as good as it sounds.

<ul class="summary-list"><li>The FTC filed a lawsuit against H&amp;R Block over what the commission called deceptive advertising.</li><li>It alleges that H&amp;R Block tricks users into starting with a higher-cost service, making downgrading difficult.</li></ul>So-called "free" online tax filing services like Intuit's TurboTax and H&amp;R Block's Online Filing option have, for a long time, not actually been free for many Americans.But the FTC has now committed to taking them on one by one — most recently with a new lawsuit against H&amp;R Block.The consumer protection agency <a target="_blank" href="https://www.ftc.gov/system/files/ftc_gov/pdf/d09427hrblockadmincomplaintpublic.pdf">filed a complaint against H&amp;R Block</a> last week, accusing the company of deceptive advertising and unfairly deleting users' tax data."H&amp;R Block designed its online products to present an obstacle course of tedious challenges to consumers, pressuring them into overpaying for its products," Samuel Levine, the Director of the FTC's Bureau of Consumer Protection, <a target="_blank" href="https://www.ftc.gov/news-events/news/press-releases/2024/02/ftc-takes-action-against-tax-prep-company-hr-block-wiping-consumers-data-deceptively-marketing-free">said in a press release</a>."Today's action demonstrates that companies using coercive techniques that harm consumers can expect to hear from the FTC," Levine continued. In its complaint, the FTC alleges that H&amp;R Block's online filing system leads users to start off with a higher-cost service, having them spend time entering all their tax information before they realize later on in the process that they can actually downgrade to a free or lower-cost option.But, when they try to downgrade, they are met with a series of time-consuming challenges, according to the FTC's statement. The system deletes all the data the user had just painstakingly entered, telling them to instead contact a customer service agent to access the downgraded option, which makes them start all over again. In contrast, when a user wants to upgrade their service, the process is instant and seamless, the FTC alleged.The FTC's complaint also accused H&amp;R Block of deceptively advertising a "free" service, despite the fact that many users do not even qualify for it.In response to the allegations, H&amp;R Block's chief legal officer Dara Redler told Business Insider the company provides "a great deal of value, unmatched tax expertise, and fair and transparent pricing.""Further, H&amp;R Block allows consumers to downgrade to a less-expensive DIY Product via multiple mechanisms while ensuring the preparation of accurate tax returns," Redler's statement to Business Insider continued.If all this sounds familiar, that's because it is. The FTC has also taken on Intuit, the maker of TurboTax, accusing them of misleading practices. The consumer agency first sued Intuit in 2022, <a target="_blank" href="https://www.businessinsider.com/turbotax-cant-advertise-as-free-when-many-pay-ftc-ruling-2024-1">finally ruling in January of this year</a> that the company cannot advertise its services as "free" unless all consumers qualify, or the ads clearly say who does.Intuit is appealing the FTC's ruling, and company spokesperson Derrick L. Plummer said in a statement<a target="_blank" href="https://www.npr.org/2024/01/23/1226291903/turbotax-intuit-ftc-free-services"> to NPR</a> that the opinion was "deeply flawed.""This decision is the result of a biased and broken system where the Commission serves as accuser, judge, jury, and then appellate judge all in the same case," Plummer said in the statement.A 2019 <a target="_blank" href="https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free">ProPublica investigation found</a> Intuit and H&amp;R Block's practices — including hiding their free filing options from Google search — are part of a decadeslong lobbying effort by the companies to keep tax filing services complicated.Both companies spend millions of dollars a year <a target="_blank" href="https://www.nbcnews.com/business/taxes/turbotax-h-r-block-spend-millions-lobbying-us-keep-doing-n736386">convincing lawmakers</a> to maintain the current system, which so happens to result in consumers buying their products, <a target="_blank" href="https://www.businessinsider.com/filing-taxes-america-system-how-other-countries-do-better-2021-8">Business Insider previously reported</a>. It was partially because of those <a target="_blank" href="https://www.businessinsider.com/turbotax-free-tax-filing-biden-inflation-reduction-act-hr-block-2023-1">lobbying efforts</a> that the IRS did not roll out its own online <a target="_blank" href="https://www.businessinsider.com/irs-file-taxes-free-tax-filing-eligibility-pilot-program-irs-2023-10">free tax filing pilot until last year</a>.

The FTC is going to war with tax services that bill themselves as free

New Delhi, The central government on Friday will seek the introduction and passage of the Central Goods and Services Tax (Amendment) Bill, 2023 and <keyword id="4742340" type="General" weightage="80" keywordseo="integrated-goods-and-services-tax" source="Orion">Integrated Goods and Services Tax</keyword> (Amendment) Bill, 2023 in the Lok Sabha. The union cabinet earlier this week had cleared the two bills. The amendment in the <keyword id="4797043" type="General" weightage="80" keywordseo="central-goods-and-services-tax-act" source="Orion">Central Goods and Services Tax Act</keyword> will allow introduction of a 28 per cent goods and services tax rate on horse racing, online gaming and casinos. Similarly, states too will have to amend their individual GST legislations separately. If the bill is passed in the day, the new tax system will become applicable from October 1, as was decided in the <keyword id="6355040" type="General" weightage="80" keywordseo="gst-council" source="Orion">GST council</keyword> meeting held earlier this month. It was decided in that meeting that 28 per cent levy on online gaming, casinos and horse racing will become applicable from October 1 onwards and will be reviewed for six months, and if need arises, changes could bemade in the tax structure after that. Friday being the last day of the monsoon session of Parliament, <keyword id="25455" type="General" weightage="80" keywordseo="finance" source="Orion">Finance</keyword> Minister <keyword id="129243" type="General" weightage="80" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> will introduce the two bills and if the House business continues, then it will also seek to get the two bills passed. Considering the fact that the GST council had to meet twice within a month owing to continuous representations from the gaming industry, seeking to ease the 28 per cent tax slab on gaming, the bills are likely to be pushed for passing as the applicability of the new tax slab is October 1. --IANSans/dpb

Centre seeks to amend GST Act to levy 28% tax on online gaming, casinos

<ul class="summary-list"><li>Selling appreciated assets like stock and real estate can trigger high capital gains taxes.</li><li>Moguls can save big by gifting assets to their parents, inheriting them back, and then selling them.</li></ul>Wealthy entrepreneurs face hefty capital gains taxes if they want to cash out after building a successful business from the ground up.But if they are willing to wait, they can save big by gifting their stock to their parents and getting it back when they die. Capital gains tax applies to the appreciation between the sale price and the asset's cost basis, typically its purchase price. "Upstream transfers" take advantage of a tax loophole for inherited assets that boosts the cost basis to its fair market value at the time of inheritance.For instance, a top earner looking to sell shares that had appreciated by $1 million since they bought them would have to pay about $238,000 in taxes, according to Pam Lucina, chief fiduciary officer at Northern Trust.But if they give the stock to their parents and sell it after inheriting it, they only have to pay that 23.8% tax rate on how much the stock had appreciated since their parents died, even if the stock had surged in value after they gave it away.You get the most bang for your buck by choosing assets with a low cost basis relative to their current value. Publicly-held stock, real estate, and private business interests are popular choices, Lucina said.Upstream planning is a powerful but risky tool, she told Business Insider. Individuals can lose their assets for good if their parents decide to share the wealth with a new spouse or other children. She estimates that only a quarter of clients actually go through with upstream planning after discussing it."Once you talk through the risks and the family dynamics aspect of it, it doesn't work for every family," she said.Thanks to tax cuts made during the Trump administration, individuals can gift or bequeath $13.61 million before triggering a 40% federal estate tax. The high exemption threshold has made upstream planning more popular. Lucina expects giving to pick up before the tax cuts expire at the end of 2025, barring action by Congress.Robert Strauss, partner at estate planning firm Weinstock Manion, typically uses upstream planning with ultra-rich clients who have already used their exemption but have less-wealthy parents who haven't. They can stash assets in a trust that benefits their parents until their passing and then the children. After the grandparents die, the children inherit the assets with a step-up basis. The federal estate tax doesn't kick in as long as the grandparents' estate does not exceed $27.22 million, the exemption for a married couple.<h2 id="fbe1dfa3-c1f3-49ff-b862-66a8fe0d22db">Buyer beware</h2><ol><li>The parents' creditors may have a right ot the assets.</li></ol>According to Lucina, the parents are usually given power of appointment over the assets to make sure they are included in their taxable estate. This legal right allows the parents to give or transfer the assets while they are alive. It also allows their creditors to pursue the assets, she warned.<ol start="2"><li>Make sure the whole family is on board.</li></ol>Lucina said best-laid plans are more likely to fall apart when more people are involved, from siblings to spouses. For instance, the parents might change their minds about leaving a bigger inheritance to one child, even if that child gifted substantial assets to them.One of Lucina's clients had to promise to pay the parents' medical bills in order to get their siblings to agree to the arrangement.Family dynamics are the thorniest part of upstream planning. Strauss said it is important to be transparent with everyone involved before the upstream transfer."You've got to navigate the family dynamics to make sure that an upstream actually isn't going to piss other people off or create an unrealistic expectation in an inheritance that's not intended," Strauss said.<ol start="3"><li>The age of the parents is very important.</li></ol>While there is no hard and fast rule, Strauss typically uses upstream transfers when the wealth creator's parents are at least in their seventies or expected to live five more years or less.It's a delicate balance. If the parents die within one year of the transfer, the assets do not receive a step up in basis.However, the assets are tied up during the parents' lifetime. During that time, the tax law and the value of the assets are bound to fluctuate. It is possible to unintentionally trigger estate taxes if the assets exceed the exemption amount by the time the parents die."Ideally, what you're doing is you're targeting the exemption amount and not less and not more, but the value of the asset will change and the exemption amount will change," Strauss said. "It makes it harder to deal with."

How rich Americans can save on taxes by giving stock and real estate to their parents 

<ul class="summary-list"><li><keyword id="19992557" type="General" weightage="100" keywordseo="medicare" source="keywords">Medicare</keyword> enrollment is open and insurers are making changes, increasing costs for some.</li><li>Medicare is a key health insurance source for older Americans, often linked to <keyword id="19966945" type="General" weightage="20" keywordseo="social-security" source="keywords">Social Security</keyword>.</li></ul>Older Americans relying on Medicare for their health insurance might be in for a costly surprise next year. Many insurers are making significant changes in 2025.Deductibles and prescription drug costs will become more expensive for some Medicare recipients — and it could impact whether older Americans can afford healthcare. Insurance company mergers and closures are contributing to shifting Medicare plans and prices. Companies like Aetna or AARP/UnitedHealthcare are <a target="_blank" class="" href="https://www.nerdwallet.com/article/insurance/medicare/big-part-d-changes">merging their coverage plans</a>, while previous insurers like Mutual of Omaha are leaving the market. That's leading to fewer — and sometimes pricier — options for Medicare recipients. "When plans end or a merger happens, Medicare enrollees can be impacted in two noticeable ways," Elizabeth <keyword id="23786390" type="General" weightage="20" keywordseo="ayoola" source="keywords">Ayoola</keyword>, personal finance writer at NerdWallet, said in a statement to Business Insider. "In the case of the former, enrollees may be left vulnerable without coverage and scrambling to find a new plan. In the event that a merger happens, enrollees could end up auto-enrolled into a plan that's no longer a good fit." Millions of older Americans depend on Medicare to pay for services like prescriptions and doctor visits. The federal insurance plan — which is often tied to Social Security andtypicallyapplies to people over 65 — is many baby boomers' main source of health coverage. Like other health insurance programs, recipientshave a yearly enrollment period.EligibleAmericans can now join, drop, or switch their supplementalMedicare plans through December 7. Ayoola told BI that if beneficiaries don't take action to adjust their health insurance plansbefore December 7, they could soon see higher out-of-pocket costs, reduced care options, or more limited drug coverage — issues that can't be resolved after the enrollment period closes. However, some beneficiaries will see price increases or loss of coverage regardless. "For people who are budgeting, open enrollment is especially important," Ayoola said. "Because it's a time to do comparison shopping and essentially see if you can find a cheaper plan somewhere else." <h2>Medicare changes on the horizon</h2>An estimate shared with BI from Healthpilot, a technology platform that helps customers choose Medicare plans, suggests that millions of older Americans could lose part of their Medicare benefits in 2025. Healthpilot estimates that there will be 1.5 million people impacted by <keyword id="23786388" type="General" weightage="20" keywordseo="medicare-advantageplan" source="keywords">Medicare Advantageplan</keyword> cancellations and 3.5 million impacted by prescription drug coverage cancellations, due in part to insurance consolidation. Former beneficiaries of those plans will need to find new coverage to replace them next year. The Medicare program has a few different branches: Parts A and B act as stand-alone health insurance programs and cover all types of inpatient and outpatient care, while Part D programs typically cover prescription drugs and basic provider visits as a supplement to people's private insurance plans. Part C, also known as <keyword id="20413657" type="General" weightage="20" keywordseo="medicare-advantage" source="keywords">Medicare Advantage</keyword>, allows seniors to join plans that are offered by private companies but are governed by Medicare rules. Advantage plans have their own caps on how much patients can spend out of pocket, and those numbers change annually. While beneficiaries with Part A and B Medicare could see premium adjustments, most major changes will occur for people with supplemental Part D and Medicare Advantage plans. An increasing number of Medicare Advantage and prescription drug plans are setting their deductible, or the amount of out-of-pocket costs patients are on the hook for before the plan kicks in, at the maximum allowed amount. Healthpilot found that 10% of Medicare Advantage plans will be at the maximum deductible — up from 5% last year. Most Medicare Advantage beneficiaries will still have prescription drug coverage in the new year, but they may face higher out-of-pocket costs. In total, the number of Medicare Advantage plans with drug benefits is largely holding steady, dropping2%. But within the group of Medicare Advantage plans that still have drug benefits, the number of $0 deductible plans will be cut in half — meaning more plans with prescription drug coverage will have higher out-of-pocket costs upfront. To be sure, not all older adultswill be negatively affected by the changes. Some might also have employer-sponsored or private healthcare coverage outside of Medicare, or have plans that aren't changing. But for the Americans who are impacted, the changes could mean healthcare becomes even more of a financial strain. <h2>Baby boomers are already struggling with healthcare costs</h2>These changing Medicare costs come as many low-income baby boomers are struggling to keep up with medical bills. Two older Americans shared with Business Insider their fears for what could happen if their out-of-pocket costs rise in the new year. <keyword id="23786389" type="General" weightage="20" keywordseo="lisa-callejas" source="keywords">Lisa Callejas</keyword> isworried about what would happen if her husband got sick next year. If that happens, they might not be able to afford treatment — her husband's Medicare out-of-pocket costs will go up to $14,000 from around $9,500. "It means we better not get sick," she said. Callejas, 55, and her husband movedto his native Mexico over the summerto save money. Their son died in January, and Callejas' husband, who worked with their son in the family business of home remodeling, can no longer do the manual labor necessary to keep operations running. Additionally, the rising <a target="_blank" href="https://www.businessinsider.com/retirement-savings-social-security-baby-boomers-without-savings-401k-poverty-2024-8">cost of living</a> made it increasingly difficult to stay in the US on a lower income. They're living off the money they made from selling their house in the US and her husband's small <a target="_blank" href="https://www.businessinsider.com/boomers-living-social-security-government-aid-snap-loneliness-crisis-isolation-2024-8">Social Security</a> benefits, but fearful of 2025. Betty, similarly, goes to her dialysis appointments three times a week. She was diagnosed with kidney disease and other conditions a few years ago, forcingher to retire early from her steady job in health communications. Betty — who chose to use her first name for privacy but whose identity was verified by Business Insider —lives on her $1,848 monthly <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/investing/what-is-social-security">Social Security disability payments </a>in southwest Illinois. The 61-year-old said she qualifies for both Medicare and <keyword id="20234511" type="General" weightage="20" keywordseo="medicaid" source="keywords">Medicaid</keyword>, but still pays a couple hundred dollars each month in healthcare expenses, in addition to her monthly $174 premium. Betty isn't sure yet if her Medicare premiums or deductibles will rise in the new year. If they do, she says she can't afford it. She already struggles to afford housing, groceries, utilities, and the car she needs to travel to her dialysis appointments. "Something as small as $20, I can't even imagine," she said. "I had about $10 left over for this month — but that was because I had to sell some jewelry that my mom picked out. I had to sell it in order to make the bills this month." <a target="_blank" class="" href="https://www.businessinsider.com/boomer-lives-on-social-security-struggles-financially-feels-lonely-retirement-2024-9">Low-income baby boomers</a> like Betty and the Callejas family might feel the greatest hurt from increased Medicare prices, Ayoola said, and these healthcare costs can derail retirement and long-term finances. Regardless of financial health, Ayoola suggested older adults talk to a Medicare expert or wealth advisor before choosing a 2025 plan. "We can't predict the future and we don't know which direction our health is going to go in," Ayoola said. "It's a good idea, no matter where your health is today, to always try your best to budget for health care expenses and look for ways to cut costs." Are you struggling to live on a fixed income in retirement? Are you open to sharing how it has impacted your healthcare access? If so, reach out to <a target="_blank" class="" href="mailto:allisonkelly@businessinsider.com">allisonkelly@businessinsider.com</a> and <a target="_blank" class="" href="mailto: jkaplan@businessinsider.com">jkaplan@businessinsider.com</a>. Correction: October 22, 2024 — An earlier version of this article misstated the number of plans affected by prescription drug coverage cancellations. The correct number is 3.5 million.

You Searched For "Goods And Services Tax Bill" and got 13 results

54th GST Council meeting to take place on September 9 in New Delhi

ANI

What a Trump or Harris presidency would mean for your tax bill

Juliana Kaplan,Bryan Metzger

Seven years of GST has lowered taxes and improved lives of 140 crore Indians: PM

ANI

Union Finance Minister Sitharaman chairs pre-budget meeting with finance ministers of states, UTs; GST Council to meet later today

ANI

Bill to amend Central Goods and Services Tax Act introduced in Lok Sabha

ANI

Lok Sabha passes Finance Bill, provision on LTCG tax on property transactions amended

ANI

GST collections in February rise 12.5% to cross ₹1.68 lakh crore

IANS

Bill Gates says the rich would be a lot poorer if he set taxes — but banning billionaires isn't on his agenda

Theron Mohamed

Trump wants to cut Social Security taxes for seniors. It's not as good as it sounds.

Allie Kelly,Ayelet Sheffey

The FTC is going to war with tax services that bill themselves as free

Grace Eliza Goodwin

Centre seeks to amend GST Act to levy 28% tax on online gaming, casinos

IANS

How rich Americans can save on taxes by giving stock and real estate to their parents

Hayley Cuccinello

Medicare coverage will change in 2025. Some boomers are already struggling to keep up with their medical bills.

Allie Kelly,Juliana Kaplan

Popular Keywords

Buying Guides