Quick Summary
An individual will have to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceedsRs.5 lakh, according to a Budget proposal presented on Wednesday. Finance Minister Nirmala Sitharaman in the Union Budget proposed to provide that where an aggregate of premium for life insurance policies (other than ULIP) issued on or after April 1, 2023, is aboveRs. 5 lakhs, income from only those policies with aggregate premium up toRs. 5 lahks shall be exempt.
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1999
(Excl. of GST ₹359)
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3499
(Excl. of GST ₹629)
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4999
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FAQ :
From April 1, 2023, maturity sums from life insurance policies with an aggregate annual premium exceeding £5 lakh will be taxed.
This rule applies to life insurance policies, excluding Unit Linked Insurance Plans (ULIPs), issued on or after April 1, 2023.
No, the tax exemption for amounts received on the death of the insured person remains unaffected.
No, insurance policies issued up to March 31, 2023, are not affected by this new tax proposal.
The new tax applies when the aggregate annual premium for a life insurance policy exceeds £5 lakh.
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