INSURANCE
Maturity proceeds of life insurance policies with annual premium of over Rs 5 lakh to be taxed: Sitharaman
Feb-02-2023

Finance Minister Nirmala Sitharaman in the Union Budget has proposed 'to provide that where aggregate of premium for life insurance policies (other than ULIP) issued on or after April 1, 2023, is above Rs 5 lakh, income from only those policies with aggregate premium up to Rs 5 lakh shall be exempt.' This will not affect the tax exemption provided to the amount received on the death of a person insured. It will also not affect insurance policies issued till March 31, 2023. 

As per the Budget proposal, maturity proceeds of all life insurance policies (other than ULIPs) that are issued after April 1, 2023, and have an annual premium of more than Rs 5 lakh will now be taxable.

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