Life Insurance Payouts Are Now Taxable For High-Premium Policies

Tax department notifies budget change to bring plans under tax net if yearly premium exceeds Rs 5 lakh. Death payouts stay exempt.

Insurance policy. (Image: BQ Prime)

The Income Tax Department notified the income tax liability on any sum received under a life insurance policy when the yearly premium exceeds Rs 5 lakh.

In 2021, the department had issued guidelines on the taxability of Ulips when the premium exceeded Rs 2.5 lakh if the policy issue date was after Feb. 1 that year.

Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit. Feel free to Add NDTV Profit as trusted source on Google.
WRITTEN BY
Janani Janarthanan
Janani is a policy correspondent tracking the Indian economy and reporting ... more
GET REGULAR UPDATES
Add us to your Preferences
Set as your preferred source on Google