There is something about income tax savings and life insurance. The two have been synonymous for decades to the extent that scores of income taxpayers have for generations looked at life insurance as a tax-saving instrument. The government has in recent years worked towards addressing this anomaly by curtailing the tax-free status enjoyed by policyholders on the maturity of insurance policies. In 2021, high-value ULIPS were made taxable and earlier this year, the budget proposal indicated similar restrictions in tax-free status for non-ULIP life insurance products. However, the detail lacked clarity on how to view this aspect of taxation on insurance policies.
In August, the CBDT (Central Board of Direct Taxes) issued a 17-page guideline to explain how this change will come into effect and what kind of non-ULIP life insurance policies will be affected. Pure term insurance policies will be exempted from taxation irrespective of their premium amount. Also, premiums paid toward pure term policies will not be included in calculating the total premium amount for taxation purposes. This, however, excludes term plans that repay the premiums on maturity. Likewise, the CBDT also clarified that the GST component would not be included for the purpose of calculating premiums for taxation purposes.
WHAT'S NEW?
Denne historien er fra September 25, 2023-utgaven av India Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 25, 2023-utgaven av India Today.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Delhi's Belly
Academic, historian and one of India's most-loved food writers, PUSHPESH PANT'S latest book-From the King's Table to Street Food: A Food History of Delhi-delves deep into the capital's culinary heritage
IT TAKES TWO TO TANGO
Hemant and Kalpana Soren changed Jharkhand's political game, converting near-collapse into an extraordinary comeback
THE MAHA BONDING
At one time, Fadnavis, Shinde and Ajit Pawar were seen as an unwieldy trio with mutually subversive intent. A bumper assembly poll harvest inverts that
THE LION PRINCE
A spectacular assembly election win ended a long political winter for Kashmir and his party, the National Conference. But Omar Abdullah now faces crucial tests—that of meeting great expectations and holding his own with the Centre till J&K gets its statehood back
TRIAL BY FIRE
Formal charges in a US court, an air marked by accusations of bribery and concealment of information, the attendant political backlash, pressure on stock prices, valuation losses. Yet the famed Adani growth appetite and business resilience stays
'Criticism has always been a source of motivation for me'
It’s just day five since he was crowned 2024 FIDE World Chess champion (which he celebrated with a bungee jump), and Gukesh Dommaraju is still learning to adjust to the fanfare.
THE YOUNG GRANDMASTERS
GUKESH DOMMARAJU IS NOW THE YOUNGEST EVER WORLD CHAMPION, BUT THAT IS JUST ICING ON THE CAKE IN INDIA'S CHESS STORY. FOR THE 'GOLDEN GENERATION', 2024 WAS THE YEAR THEY DID IT ALL
SHOOTING QUEEN
Manu Bhaker scripted a classic turnaround at Paris 2024, putting the ghosts of the past behind her through sheer willpower to engrave her own destiny
THE COMEBACK KING
It was in no one's script: Naidu's standing leap from near-oblivion, to a place where he writes the destiny of Andhra—even New Delhi
HALTING THE BJP JUGGERNAUT
A roller-coaster year saw the Opposition coalition rebound with bold moves and policy wins, but internal rifts continue to test its durability
