New Taxation : 2023

A customer purchased a policy of Rs. 3L on 18th April 2023. Whether his policy will be

• Taxable

• Tax Free

Policy A is issued on 1st of March 23 with an annual premium of Rs. 6L , Policy B is issued on 1st April 23 with an annual Premium of Rs. 6L to the same policyholder which of the policies will be tax applicable

• Policy B will be eligible for tax exemption however policy A will not be eligible for tax exemption

• Policy A will be eligible for tax exemption however policy B will not be eligible for tax exemption

• Both policy A & B will not be eligible for tax exemption

• Both policy A & B will be eligible for tax exemption

Whether is any impact on the payment of renewal premium for a policy issued before 1st April 2023?

• Yes

• No impacts as amendment is section 10(10D) is only applicable to new policies issued on or after 1st April 2023.

Taxation of Traditional policies will be tagged under the head

• Capital Gains

• Income of other sources

• Income from Business/ Profession

• Non of the Above

Whether tax exemption on death proceeds will be available on such Non- ULIP policy?

• Yes, exemption to be continued for proceeds of such Non ULIP policy received upon death of a person.

• No, exemption to be continued for proceeds of such Non ULIP policy received upon death of a person.

If a customer takes 10 policies of Rs. 52000/- each, will the maturity proceeds will be taxable or tax-free?

• All Policies will be tax-free

• First 9 policies will be tax-free as the total premium paid in the year doesn't exceed Rs. 5L while the 10th policy will be taxable

• All policies will be taxable as the total premium paid exceed Rs. 5 L

Mr. Ashutosh want to take 1 policy of Rs.6 L ( Traditional ) & Rs. 2 L ULIP in April'23. will it taxable or tax free?

• Taxable for traditional , as it is exceeding the limit of Rs. 5 L . However ULIP will be tax free as the premium for within the limit of Rs. 2.5L

• Both policies will be taxable as total premium exceeds Rs. 5L

A customer with multiple Non ULIP policies issued as a policy holder with different life Insured. Will this case be considered for the threshold of 5 L ?

• YES

• NO

Mr. Patil wants to buy a tax free Non-ULIP policy after the 1st of April 2023. How much is the maximum premium he is allowed to invest if he wants maturity to be completely tax free?

• 5,00,000

• 5,00,001

• 4,99,999

Non-ULIP Subscribed through other life insurance company is also required to be considered in the determining the threshold

• NO

• Yes , all Non-ULIP policies purchased by a policyholder, Including Non-ULIP policy of other life insurance companies in India , have to be considered for the purpose of assessing applicability of the aggregate premium.