Calculating PLI Amount

Brijesh884

What are the factors that go into calculating the Personal Liability Insurance (PLI) amount for a homeowner? What are the benefits of having a PLI?

Personal Liability Insurance (PLI) is a type of insurance that helps protect homeowners from financial loss if they are responsible for an accident that causes injury or property damage to another person. The amount of PLI coverage is based on the homeowner's estimated potential liability. Factors such as the size of the home, the type of activities that take place on the property, and the number of people who live there can all affect the amount of PLI coverage needed.

The benefits of having a PLI are that it can help protect the homeowner from financial loss should they be found liable for an accident that causes injury or property damage to another person. Additionally, it can also provide peace of mind knowing that the homeowner is protected against unexpected financial losses.

Vidyalaxmi449

The Pradhan Mantri Garib Kalyan Yojana (PMGKY), introduced in 2020, provides an income tax benefit i.e. Public Provident Fund (PPF) as Provident Fund Interest (PFI). The amount of PFI is calculated based on the contribution made in March 2020.
The calculation of the Provident Fund Interest (PFI) is done by taking into account the interest rate applicable to a Public Provident Fund (PPF) account during the last financial year. The interest rate is calculated based on the gross contributions made till that month in the year 2020.
As per the government notification, the interest rate applicable on the PF Is 8.5%. This rate is applicable to both employer's contribution as well as employee's contribution.
The PFI also includes any additional benefits that the employer manages to get from the government for its employees based on the contribution made.
The PF amount can also be subject to other deductions like the standard tax deductions or employees' contribution to the PF itself. These deductions will be applicable from the amount of the contribution made by the employee.
Finally, the PF amount is calculated by adding up the employee's contribution and the employer's contribution and subtracting the applicable deductions.

Hope this helps.

For more information, please refer to the following link:
https://www.incometaxindia.gov.in/Pages/repository/provident-fund-interest.aspx