Budget 2025: How the new tax rules will impact ULIP investments—Key changes you need to know
1 month, 3 weeks ago

Budget 2025: How the new tax rules will impact ULIP investments—Key changes you need to know

Live Mint  

Union Budget 2025: The budget has introduced immense clarity on the tax treatment of the Unit Linked Insurance Policies. Specifically those ULIP's that don't fall or qualify for the exemptions provided under Section Section 10 of the Income Tax Act. ULIPs combine both life insurance and mutual fund investments in one asset class. Also Read | The hidden costs of index ULIPs: Why passive funds still charge active fees

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ULIP tax treatment ambiguity cleared in Budget 2025 | Details here
1 month, 3 weeks ago

ULIP tax treatment ambiguity cleared in Budget 2025 | Details here

Hindustan Times  

The Union Budget 2025 has introduced an important amendment when it comes to the taxation of Unit Linked Insurance Policies. The Union Budget 2025 has introduced an important amendment when it comes to the taxation of Unit Linked Insurance Policies This brings much-needed clarity since so far, the tax treatment of ULIPs was ambiguous. Taxation of Unit Life Insurance Policy …

ULIP profit to be taxed as capital gains, like equity mutual funds
1 month, 3 weeks ago

ULIP profit to be taxed as capital gains, like equity mutual funds

Live Mint  

Budget 2025 has brought significant clarity to the taxation of unit-linked insurance policies, resolving years of ambiguity that left investors and tax professionals uncertain about how profits from these policies would be taxed. In other words, short-term capital gains from ULIPs will be taxed at 20%, and long-term capital gains —for investments held for over 12 months—will be taxed at …

How Section 10(10D) Of IT Act Will Impact Non-ULIP Insurance Policies After March 31?
2 years ago

How Section 10(10D) Of IT Act Will Impact Non-ULIP Insurance Policies After March 31?

News 18  

Tax incentives have always acted as a catalyst in ensuring wider insurance adoption. The proposal, instead, stated that insurance policies with over Rs 5 lakh annual premium purchased after 01 April 2023 would no longer be eligible for tax exemption under Section 10. Union Budget 2023’s proposal regarding Section 10 In the Union Budget 2023, Finance Minister proposed that the …

Investment And Insurance: What Is Unit-linked Insurance Plan That Offers Dual Benefits?
2 years, 1 month ago

Investment And Insurance: What Is Unit-linked Insurance Plan That Offers Dual Benefits?

News 18  

While presenting the Union Budget 2023, finance minister Nirmala Sitharaman announced the proposal to limit income tax exemption from proceeds of insurance policies with very high value. 5 lakh shall be exempt.” An individual will be liable to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceeds Rs 5 lakh. ULIP or Unit …

Budget 2023: Here's How Insurance Sector Reacted
2 years, 1 month ago

Budget 2023: Here's How Insurance Sector Reacted

News 18  

Budget 2023: An individual will be liable to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceeds Rs 5 lakh. Tarun Rustagi, Chief Financial Officer, Canara HSBC Life Insurance, said, “The Budget continues to focus on overall development of India through digitisation and creates more wealth generation opportunities for the middle-class families. From …

Budget 2023 | Exemptions on high-value life insurance proceeds pruned
2 years, 1 month ago

Budget 2023 | Exemptions on high-value life insurance proceeds pruned

The Hindu  

The Union Budget 2023-24 has proposed to limit the income tax exemption on the proceeds of high value life insurance policies. Mooted as part of an emphasis on better targeting of tax concessions and exemptions, the proposal means that only income from life insurance policies with an aggregate premium up to ₹5 lakh will be exempt from taxation. “It is …

What are ULIPs? How do they work? Are they good for long-term investment?
3 years, 5 months ago

What are ULIPs? How do they work? Are they good for long-term investment?

Business Standard  

When you think of investing your money, the first thought that you have is investing in conventional instruments like fixed deposits or gold. However, you might want to check out more modern financial tools like ULIPs, which offer better returns and also offer insurance coverage. Premium allocation One part utilised for insurance Another part used for investing in funds The …

Union Budget 2021: FM Announces Tax on Interest on EPF over Rs 2.5 lakh a Year
4 years, 1 month ago

Union Budget 2021: FM Announces Tax on Interest on EPF over Rs 2.5 lakh a Year

News 18  

The Union Finance Minister Nirmala Sitharaman while presenting Budget 2021 has announced certain tax measures on investments of high net-worth individuals in different ways. Now, the capital gains tax will be charged on the maturity amount from unit-linked insurance plans with an annual premium above Rs 2.5 lakh. Even, interest earned on Employees’ Provident Fund, Voluntary Provident Fund or exempted …

Budget 2021 May Dent Retirement Savings as PF Interest Above a Certain Limit to Get Taxable
4 years, 1 month ago

Budget 2021 May Dent Retirement Savings as PF Interest Above a Certain Limit to Get Taxable

News 18  

The Union Budget 2021 presented on Monday restricted the tax-free return on investment in provident funds and in unit linked insurance plans at Rs 2.50 lakh each. So far, there was no cap on the amount one could invest in ULIP and provident fund to get a tax-free return, and the latter is especially one of the most important saving …

’Wish uniform tax treatment of gains in mutual funds and ULIPs in Budget 2021’
4 years, 2 months ago

’Wish uniform tax treatment of gains in mutual funds and ULIPs in Budget 2021’

Live Mint  

The upcoming Union Budget is likely to be presented on February 1, 2021. 2) Uniform tax treatment in respect of investments in Mutual Funds Units and ULIPs of Life Insurance companies • Standardizing tax treatments for switching Investments under Mutual Fund schemes and ULIPs of Insurance companies. • Long Term Policy for Mutual Funds under SEBI classification Mutual Fund Linked …

New income tax regime clouds earnings outlook of insurance companies
5 years, 1 month ago

New income tax regime clouds earnings outlook of insurance companies

Live Mint  

India’s steps in the budget to end some exemptions given for tax planning and the removal of dividend distribution tax for companies will weigh on the earnings prospects of insurers. “There is a worry that tax benefit was an important demand driver for the industry and people will no longer ‘need’ to invest in life insurance if they switch to …

Decoding unit-linked insurance plans
5 years, 10 months ago

Decoding unit-linked insurance plans

Live Mint  

Unit-linked insurance plans or Ulips are products sold to you by insurers which area combination of a pure life insurance policy and a marketlinked investment product. A part of the premium you pay to your insurer, certain portion gets allocated to equity or debt funds,” said Dheeraj Sehgal, chief institutional business officer, Bajaj Allianz Life Insurance. “You are allowed to …

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