Quick Summary
CBDT issued Guidelines on Income Tax Exemption for Unit Linked Insurance Policies (ULIP) Receipts under Section 10(10D) vide a Circular 2/2022 dated 19/01/2022. This circular explains the methodology to find out the tax exemption status of ULIPs. Section 10(10D) of the Income Tax Act, 1961 provides
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Section 10(10D) of the Income Tax Act, 1961, provides for income-tax exemption on sums received under a life insurance policy, including bonuses, subject to certain conditions.
The CBDT has issued guidelines clarifying that receipts from ULIPs, including maturity, withdrawal, and bonus amounts, will be subject to capital gains tax if the annual premium exceeds £250,000.
For exemption purposes, the aggregate premium of both new and old ULIPs will be considered. If this total exceeds £250,000, the exemption will not be available for the portion of the new ULIP exceeding £250,000 in premium.
Old ULIPs purchased before February 1, 2021, were generally considered to be exempted.
The main change is that ULIPs with an annual premium above £250,000 will now be subject to capital gains tax, affecting maturity and withdrawal receipts, including bonuses.
CAclubindia
