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Taxability of various Insurance Plans for NRIs

01 May 2020

Are there any income tax implications if an NRI purchase different type of insurance policies (Example: Unit linked insurance Policy, Maturity policy, life insurance policy, Annuity insurance(including Bonus) plan, Pension plan etc.)?

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Kiran Hathalia (833 Points)
Replied 01 May 2020

Taxability of Insurance plans of NRI shall be governed by FATCA - US residents and CRS for the non-US residents. But TDS shall be applicable at the time of policy payout u/s 195 of the Act only if the policy is not exempt u/s 10(10D). Further, no tax will be deducted for countries where DTAA benefit is available as per section 90 of the of The Income Tax Act, 1961, and the customer has submitted complete & valid Form 10F and Tax residency certificate with the company.