According to the budget proposal presented by Finance Minister Nirmala Sitharaman on Wednesday, if the total annual premium is more than five lakh rupees, then the maturity amount of the life insurance policy will have to be taxed.
The Finance Minister proposed in the budget that for life insurance policies (other than ULIPs) issued after April 1, 2023, if the total premium exceeds five lakh rupees, then the policies in which the total premium is up to five lakh rupees will be exempted. will be given.
According to the proposal, the existing tax exemption on the amount received in the event of the death of the insured person will remain intact. He said that the new system will not be applicable to insurance policies issued till March 31, 2023.
Economist Nidhi Manchanda said one of the setbacks from the Finance Bill pertains to taxation on maturity proceeds of life insurance policies.
He said that it should be kept in mind that if a person has more than one life insurance policy which has been issued after April 1, 2023 and if the aggregate amount of premium of such policy exceeds five lakh rupees, then the maturity The amount will be taxable.
Post-Budget, share prices of HDFC Life Insurance declined by 11 per cent and SBI Life Insurance by 10 per cent.
