Now you will have to pay tax on the maturity amount of life insurance policy. In this policy, tax will be levied only if the annual premium is more than five lakh rupees.
If you invest in a life insurance policy, then you will now have to pay tax on the amount you get on the maturity of the life insurance policy. In this policy, tax will be levied only if the annual premium is more than five lakh rupees.
At the same time, the existing tax exemption on the amount received on the death of the insurance holder will remain intact. Life insurance policy issued after April 1, 2023 with a premium of less than Rs 5 lakh will continue to be exempted.
Let us tell you that take Term Insurance or traditional insurance like Money Back and Endowment Plan, both are taxed. You have to pay GST as many times as you pay the insurance premium.
Income tax is also applicable on the Maturity Amount of the policy. Learn in this video of Money9, know when and how much tax is applicable on Life Insurance Policy?
