New Delhi, Feb. 11 -- The recently announced budget introduced significant personal finance changes impacting taxpayers and investors. One of the key updates involvedUnit Linked Insurance Plans (ULIPs). It has been clarified by the Finance Ministry that if the annual premium exceeds Rs.2.5 lakhs the redemption becomes subject to capital gains tax.

ULIPs that are held for more than a year will be taxed at 12.5%, equating them to equity-oriented mutual funds and stocks. Earlier ULIP redemptions were tax free under section 10(10D) if the annual premium remained below Rs.2.5 lakh for policies that are purchased after February 1, 2021.

One more crucial development has been that the timeline for filing updated income tax returns has been exte...